As Pending in Senate Committee

125th General Assembly
Regular Session
2003-2004
Sub. S. B. No. 133


SENATORS Wachtmann, Schuring, Austria, Amstutz, Stivers, Harris, Dann, Spada, Coughlin, Armbruster, Jordan, Randy Gardner, Jacobson



A BILL
To amend sections 102.02, 102.03, 102.06, 117.10, 1
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 2
171.01, 171.02, 171.03, 171.04, 742.03, 742.04, 3
742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03, 4
1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 5
1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 6
1707.46, 3307.03, 3307.05, 3307.06, 3307.07, 7
3307.11, 3307.20, 3309.03, 3309.05, 3309.06, 8
3309.07, 3309.14, 3309.22, 5505.04, and 5505.07; 9
to amend, for the purpose of adopting new section 10
numbers as indicated in parentheses, sections 11
145.051 (145.052) and 3309.061 (3309.071); to 12
enact new sections 145.051 and 3309.061; and 13
sections 109.98, 111.30, 145.041, 145.053, 14
145.054, 145.055, 145.057, 145.092, 145.093, 15
145.094, 145.114, 145.99, 171.06, 171.50, 742.031, 16
742.042, 742.043, 742.044, 742.046, 742.102, 17
742.103, 742.104, 742.114, 742.99, 1707.162, 18
1707.163, 3307.041, 3307.042, 3307.043, 3307.051, 19
3307.061, 3307.072, 3307.073, 3307.074, 3307.152, 20
3307.99, 3309.041, 3309.042, 3309.043, 3309.051, 21
3309.072, 3309.073, 3309.074, 3309.157, 3309.99, 22
5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 23
5505.046, 5505.048, 5505.062, 5505.063, 5505.064, 24
5505.065, 5505.066, 5505.122, and 5505.99 of the 25
Revised Code regarding governance of Ohio's five 26
public retirement systems.27


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 102.02, 102.03, 102.06, 117.10, 28
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02, 29
171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41, 30
1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 31
1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03, 32
3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05, 33
3309.06, 3309.07, 3309.14, 3309.22, 5505.04, and 5505.07 be 34
amended; sections 145.051 (145.052) and 3309.061 (3309.071) be 35
amended for the purpose of adopting new section numbers as 36
indicated in parentheses; and new sections 145.051 and 3309.061 37
and sections 109.98, 111.30, 145.041, 145.053, 145.054, 145.055, 38
145.057, 145.092, 145.093, 145.094, 145.114, 145.99, 171.06, 39
171.50, 742.031, 742.042, 742.043, 742.044, 742.046, 742.102, 40
742.103, 742.104, 742.114, 742.99, 1707.162, 1707.163, 3307.041, 41
3307.042, 3307.043, 3307.051, 3307.061, 3307.072, 3307.073, 42
3307.074, 3307.152, 3307.99, 3309.041, 3309.042, 3309.043, 43
3309.051, 3309.072, 3309.073, 3309.074, 3309.157, 3309.99, 44
5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 5505.046, 45
5505.048, 5505.062, 5505.063, 5505.064, 5505.065, 5505.066, 46
5505.122, and 5505.99 of the Revised Code be enacted to read as 47
follows:48

       Sec. 102.02.  (A) Except as otherwise provided in division49
(H) of this section, all of the following shall file with the 50
appropriate ethics commission the disclosure statement described 51
in this division on a form prescribed by the appropriate 52
commission: every person who is elected to or is a candidate for a 53
state, county, or city office, or the office of member of the 54
United States congress, and every person who is appointed to fill 55
a vacancy for an unexpired term in such an elective office; all 56
members of the state board of education; the director, assistant 57
directors, deputy directors, division chiefs, or persons of 58
equivalent rank of any administrative department of the state; the 59
president or other chief administrative officer of every state 60
institution of higher education as defined in section 3345.011 of 61
the Revised Code; the chief executive officer and the members of 62
the board of each state retirement system; each employee of a 63
state retirement board who is a state retirement system investment 64
officer licensed pursuant to section 1707.163 of the Revised Code; 65
the members of the Ohio retirement study council appointed 66
pursuant to division (C) of section 171.01 of the Revised Code; 67
employees of the Ohio retirement study council, other than 68
employees who perform purely administrative or clerical functions;69
all members of the board of commissioners on grievances and70
discipline of the supreme court and the ethics commission created71
under section 102.05 of the Revised Code; every business manager,72
treasurer, or superintendent of a city, local, exempted village,73
joint vocational, or cooperative education school district or an 74
educational service center; every person who is elected to or is a 75
candidate for the office of member of a board of education of a 76
city, local, exempted village, joint vocational, or cooperative77
education school district or of a governing board of an 78
educational service center that has a total student count of 79
twelve thousand or more as most recently determined by the 80
department of education pursuant to section 3317.03 of the Revised 81
Code; every person who is appointed to the board of education of a 82
municipal school district pursuant to division (B) or (F) of 83
section 3311.71 of the Revised Code; all members of the board of84
directors of a sanitary district established under Chapter 6115.85
of the Revised Code and organized wholly for the purpose of 86
providing a water supply for domestic, municipal, and public use 87
that includes two municipal corporations in two counties; every 88
public official or employee who is paid a salary or wage in 89
accordance with schedule C of section 124.15 or schedule E-2 of 90
section 124.152 of the Revised Code; members of the board of 91
trustees and the executive director of the tobacco use prevention 92
and control foundation; members of the board of trustees and the 93
executive director of the southern Ohio agricultural and community 94
development foundation; and every other public official or 95
employee who is designated by the appropriate ethics commission 96
pursuant to division (B) of this section shall file with the 97
appropriate ethics commission on a form prescribed by the 98
commission, a statement disclosing all of the following:.99

       The disclosure statement shall include all of the following:100

       (1) The name of the person filing the statement and each101
member of the person's immediate family and all names under which102
the person or members of the person's immediate family do103
business;104

       (2)(a) Subject to divisions (A)(2)(b) and (c) of this section 105
and except as otherwise provided in section 102.022 of the Revised 106
Code, identification of every source of income, other than income 107
from a legislative agent identified in division (A)(2)(b) of this 108
section, received during the preceding calendar year, in the 109
person's own name or by any other person for the person's use or110
benefit, by the person filing the statement, and a brief111
description of the nature of the services for which the income was112
received. If the person filing the statement is a member of the113
general assembly, the statement shall identify the amount of every114
source of income received in accordance with the following ranges115
of amounts: zero or more, but less than one thousand dollars; one116
thousand dollars or more, but less than ten thousand dollars; ten117
thousand dollars or more, but less than twenty-five thousand118
dollars; twenty-five thousand dollars or more, but less than fifty119
thousand dollars; fifty thousand dollars or more, but less than120
one hundred thousand dollars; and one hundred thousand dollars or121
more. Division (A)(2)(a) of this section shall not be construed to 122
require a person filing the statement who derives income from a123
business or profession to disclose the individual items of income124
that constitute the gross income of that business or profession,125
except for those individual items of income that are attributable126
to the person's or, if the income is shared with the person, the127
partner's, solicitation of services or goods or performance,128
arrangement, or facilitation of services or provision of goods on129
behalf of the business or profession of clients, including130
corporate clients, who are legislative agents as defined in131
section 101.70 of the Revised Code. A person who files the132
statement under this section shall disclose the identity of and133
the amount of income received from a person who the public134
official or employee knows or has reason to know is doing or135
seeking to do business of any kind with the public official's or136
employee's agency.137

       (b) If the person filing the statement is a member of the138
general assembly, the statement shall identify every source of139
income and the amount of that income that was received from a140
legislative agent, as defined in section 101.70 of the Revised141
Code, during the preceding calendar year, in the person's own name142
or by any other person for the person's use or benefit, by the143
person filing the statement, and a brief description of the nature144
of the services for which the income was received. Division145
(A)(2)(b) of this section requires the disclosure of clients of146
attorneys or persons licensed under section 4732.12 of the Revised147
Code, or patients of persons certified under section 4731.14 of148
the Revised Code, if those clients or patients are legislative149
agents. Division (A)(2)(b) of this section requires a person150
filing the statement who derives income from a business or151
profession to disclose those individual items of income that152
constitute the gross income of that business or profession that153
are received from legislative agents.154

       (c) Except as otherwise provided in division (A)(2)(c) of155
this section, division (A)(2)(a) of this section applies to156
attorneys, physicians, and other persons who engage in the157
practice of a profession and who, pursuant to a section of the158
Revised Code, the common law of this state, a code of ethics159
applicable to the profession, or otherwise, generally are required160
not to reveal, disclose, or use confidences of clients, patients,161
or other recipients of professional services except under162
specified circumstances or generally are required to maintain163
those types of confidences as privileged communications except164
under specified circumstances. Division (A)(2)(a) of this section165
does not require an attorney, physician, or other professional166
subject to a confidentiality requirement as described in division167
(A)(2)(c) of this section to disclose the name, other identity, or168
address of a client, patient, or other recipient of professional169
services if the disclosure would threaten the client, patient, or170
other recipient of professional services, would reveal details of171
the subject matter for which legal, medical, or professional172
advice or other services were sought, or would reveal an otherwise173
privileged communication involving the client, patient, or other174
recipient of professional services. Division (A)(2)(a) of this175
section does not require an attorney, physician, or other176
professional subject to a confidentiality requirement as described177
in division (A)(2)(c) of this section to disclose in the brief178
description of the nature of services required by division179
(A)(2)(a) of this section any information pertaining to specific180
professional services rendered for a client, patient, or other181
recipient of professional services that would reveal details of182
the subject matter for which legal, medical, or professional183
advice was sought or would reveal an otherwise privileged184
communication involving the client, patient, or other recipient of185
professional services.186

       (3) The name of every corporation on file with the secretary187
of state that is incorporated in this state or holds a certificate188
of compliance authorizing it to do business in this state, trust,189
business trust, partnership, or association that transacts190
business in this state in which the person filing the statement or191
any other person for the person's use and benefit had during the192
preceding calendar year an investment of over one thousand dollars193
at fair market value as of the thirty-first day of December of the194
preceding calendar year, or the date of disposition, whichever is195
earlier, or in which the person holds any office or has a196
fiduciary relationship, and a description of the nature of the197
investment, office, or relationship. Division (A)(3) of this198
section does not require disclosure of the name of any bank,199
savings and loan association, credit union, or building and loan200
association with which the person filing the statement has a201
deposit or a withdrawable share account.202

       (4) All fee simple and leasehold interests to which the203
person filing the statement holds legal title to or a beneficial204
interest in real property located within the state, excluding the205
person's residence and property used primarily for personal206
recreation;207

       (5) The names of all persons residing or transacting business 208
in the state to whom the person filing the statement owes, in the 209
person's own name or in the name of any other person, more than 210
one thousand dollars. Division (A)(5) of this section shall not be 211
construed to require the disclosure of debts owed by the person 212
resulting from the ordinary conduct of a business or profession or 213
debts on the person's residence or real property used primarily 214
for personal recreation, except that the superintendent of 215
financial institutions shall disclose the names of all216
state-chartered savings and loan associations and of all service217
corporations subject to regulation under division (E)(2) of218
section 1151.34 of the Revised Code to whom the superintendent in219
the superintendent's own name or in the name of any other person 220
owes any money, and that the superintendent and any deputy221
superintendent of banks shall disclose the names of all222
state-chartered banks and all bank subsidiary corporations subject223
to regulation under section 1109.44 of the Revised Code to whom224
the superintendent or deputy superintendent owes any money.225

       (6) The names of all persons residing or transacting business 226
in the state, other than a depository excluded under division 227
(A)(3) of this section, who owe more than one thousand dollars to 228
the person filing the statement, either in the person's own name 229
or to any person for the person's use or benefit. Division (A)(6) 230
of this section shall not be construed to require the disclosure 231
of clients of attorneys or persons licensed under section 4732.12 232
or 4732.15 of the Revised Code, or patients of persons certified 233
under section 4731.14 of the Revised Code, nor the disclosure of 234
debts owed to the person resulting from the ordinary conduct of a 235
business or profession.236

       (7) Except as otherwise provided in section 102.022 of the237
Revised Code, the source of each gift of over seventy-five238
dollars, or of each gift of over twenty-five dollars received by a239
member of the general assembly from a legislative agent, received240
by the person in the person's own name or by any other person for241
the person's use or benefit during the preceding calendar year,242
except gifts received by will or by virtue of section 2105.06 of243
the Revised Code, or received from spouses, parents, grandparents,244
children, grandchildren, siblings, nephews, nieces, uncles, aunts,245
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,246
fathers-in-law, mothers-in-law, or any person to whom the person247
filing the statement stands in loco parentis, or received by way248
of distribution from any inter vivos or testamentary trust249
established by a spouse or by an ancestor;250

       (8) Except as otherwise provided in section 102.022 of the251
Revised Code, identification of the source and amount of every252
payment of expenses incurred for travel to destinations inside or253
outside this state that is received by the person in the person's254
own name or by any other person for the person's use or benefit255
and that is incurred in connection with the person's official256
duties, except for expenses for travel to meetings or conventions257
of a national or state organization to which any state agency,258
including, but not limited to, any legislative agency or state259
institution of higher education as defined in section 3345.011 of260
the Revised Code, pays membership dues, or any political261
subdivision or any office or agency of a political subdivision262
pays membership dues;263

       (9) Except as otherwise provided in section 102.022 of the264
Revised Code, identification of the source of payment of expenses265
for meals and other food and beverages, other than for meals and266
other food and beverages provided at a meeting at which the person267
participated in a panel, seminar, or speaking engagement or at a268
meeting or convention of a national or state organization to which 269
any state agency, including, but not limited to, any legislative270
agency or state institution of higher education as defined in271
section 3345.011 of the Revised Code, pays membership dues, or any272
political subdivision or any office or agency of a political273
subdivision pays membership dues, that are incurred in connection274
with the person's official duties and that exceed one hundred275
dollars aggregated per calendar year;276

       (10) If the financial disclosure statement is filed by a277
public official or employee described in division (B)(2) of278
section 101.73 of the Revised Code or division (B)(2) of section279
121.63 of the Revised Code who receives a statement from a280
legislative agent, executive agency lobbyist, or employer that281
contains the information described in division (F)(2) of section282
101.73 of the Revised Code or division (G)(2) of section 121.63 of283
the Revised Code, all of the nondisputed information contained in284
the statement delivered to that public official or employee by the285
legislative agent, executive agency lobbyist, or employer under286
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of287
the Revised Code. As used in division (A)(10) of this section,288
"legislative agent," "executive agency lobbyist," and "employer"289
have the same meanings as in sections 101.70 and 121.60 of the290
Revised Code.291

       A person may file a statement required by this section in292
person or by mail. A person who is a candidate for elective office 293
shall file the statement no later than the thirtieth day before 294
the primary, special, or general election at which the candidacy 295
is to be voted on, whichever election occurs soonest, except that 296
a person who is a write-in candidate shall file the statement no 297
later than the twentieth day before the earliest election at which 298
the person's candidacy is to be voted on. A person who holds 299
elective office shall file the statement on or before the300
fifteenth day of April of each year unless the person is a301
candidate for office. A person who is appointed to fill a vacancy 302
for an unexpired term in an elective office shall file the303
statement within fifteen days after the person qualifies for304
office. Other persons shall file an annual statement on or before305
the fifteenth day of April or, if appointed or employed after that306
date, within ninety days after appointment or employment. No307
person shall be required to file with the appropriate ethics308
commission more than one statement or pay more than one filing fee309
for any one calendar year.310

       The appropriate ethics commission, for good cause, may extend311
for a reasonable time the deadline for filing a statement under312
this section.313

       A statement filed under this section is subject to public314
inspection at locations designated by the appropriate ethics315
commission except as otherwise provided in this section.316

       (B) The Ohio ethics commission, the joint legislative ethics317
committee, and the board of commissioners on grievances and318
discipline of the supreme court, using the rule-making procedures319
of Chapter 119. of the Revised Code, may require any class of320
public officials or employees under its jurisdiction and not321
specifically excluded by this section whose positions involve a322
substantial and material exercise of administrative discretion in323
the formulation of public policy, expenditure of public funds,324
enforcement of laws and rules of the state or a county or city, or325
the execution of other public trusts, to file an annual statement326
on or before the fifteenth day of April under division (A) of this327
section. The appropriate ethics commission shall send the public328
officials or employees written notice of the requirement by the329
fifteenth day of February of each year the filing is required330
unless the public official or employee is appointed after that331
date, in which case the notice shall be sent within thirty days332
after appointment, and the filing shall be made not later than333
ninety days after appointment.334

       Except for disclosure statements filed by members of the335
board of trustees and the executive director of the tobacco use336
prevention and control foundation and members of the board of337
trustees and the executive director of the southern Ohio338
agricultural and community development foundation, disclosure339
statements filed under this division with the Ohio ethics 340
commission by members of boards, commissions, or bureaus of the 341
state for which no compensation is received other than reasonable 342
and necessary expenses shall be kept confidential. Disclosure343
statements filed with the Ohio ethics commission under division 344
(A) of this section by business managers, treasurers, and 345
superintendents of city, local, exempted village, joint 346
vocational, or cooperative education school districts or 347
educational service centers shall be kept confidential, except 348
that any person conducting an audit of any such school district or 349
educational service center pursuant to section 115.56 or Chapter 350
117. of the Revised Code may examine the disclosure statement of 351
any business manager, treasurer, or superintendent of that school352
district or educational service center. The Ohio ethics commission 353
shall examine each disclosure statement required to be kept 354
confidential to determine whether a potential conflict of interest 355
exists for the person who filed the disclosure statement. A 356
potential conflict of interest exists if the private interests of 357
the person, as indicated by the person's disclosure statement, 358
might interfere with the public interests the person is required 359
to serve in the exercise of the person's authority and duties in360
the person's office or position of employment. If the commission 361
determines that a potential conflict of interest exists, it shall 362
notify the person who filed the disclosure statement and shall 363
make the portions of the disclosure statement that indicate a 364
potential conflict of interest subject to public inspection in the 365
same manner as is provided for other disclosure statements. Any 366
portion of the disclosure statement that the commission determines 367
does not indicate a potential conflict of interest shall be kept368
confidential by the commission and shall not be made subject to369
public inspection, except as is necessary for the enforcement of370
Chapters 102. and 2921. of the Revised Code and except as371
otherwise provided in this division.372

       (C) No person shall knowingly fail to file, on or before the373
applicable filing deadline established under this section, a374
statement that is required by this section.375

       (D) No person shall knowingly file a false statement that is376
required to be filed under this section.377

       (E)(1) Except as provided in divisions (E)(2) and (3) of this 378
section, the statement required by division (A) or (B) of this 379
section shall be accompanied by a filing fee of forty dollars.380

       (2) The statement required by division (A) of this section381
shall be accompanied by the following filing fee to be paid by the 382
person who is elected or appointed to, or is a candidate for, any 383
of the following offices:384

For state office, except member of the 385
state board of education $65 386
For office of member of United States 387
congress or member of general assembly $40 388
For county office $40 389
For city office $25 390
For office of member of the state board 391
of education $25 392
For office of member of a city, local, 393
exempted village, or cooperative 394
education board of 395
education or educational service 396
center governing board $20 397
For position of business manager, 398
treasurer, or superintendent of a 399
city, local, exempted village, joint 400
vocational, or cooperative education 401
school district or 402
educational service center $20 403

       (3) No judge of a court of record or candidate for judge of a 404
court of record, and no referee or magistrate serving a court of405
record, shall be required to pay the fee required under division406
(E)(1) or (2) or (F) of this section.407

       (4) For any public official who is appointed to a nonelective 408
office of the state and for any employee who holds a nonelective 409
position in a public agency of the state, the state agency that is 410
the primary employer of the state official or employee shall pay 411
the fee required under division (E)(1) or (F) of this section.412

       (F) If a statement required to be filed under this section is 413
not filed by the date on which it is required to be filed, the414
appropriate ethics commission shall assess the person required to415
file the statement a late filing fee of ten dollars for each day 416
the statement is not filed, except that the total amount of the 417
late filing fee shall not exceed two hundred fifty dollars.418

       (G)(1) The appropriate ethics commission other than the Ohio419
ethics commission shall deposit all fees it receives under420
divisions (E) and (F) of this section into the general revenue421
fund of the state.422

       (2) The Ohio ethics commission shall deposit all receipts,423
including, but not limited to, fees it receives under divisions424
(E) and (F) of this section and all moneys it receives from425
settlements under division (G) of section 102.06 of the Revised426
Code, into the Ohio ethics commission fund, which is hereby427
created in the state treasury. All moneys credited to the fund428
shall be used solely for expenses related to the operation and429
statutory functions of the commission.430

       (H) Division (A) of this section does not apply to a person431
elected or appointed to the office of precinct, ward, or district432
committee member under Chapter 3517. of the Revised Code; a433
presidential elector; a delegate to a national convention; village434
or township officials and employees; any physician or psychiatrist435
who is paid a salary or wage in accordance with schedule C of436
section 124.15 or schedule E-2 of section 124.152 of the Revised437
Code and whose primary duties do not require the exercise of438
administrative discretion; or any member of a board, commission,439
or bureau of any county or city who receives less than one440
thousand dollars per year for serving in that position.441

       Sec. 102.03.  (A)(1) No present or former public official or442
employee shall, during public employment or service or for twelve443
months thereafter, represent a client or act in a representative444
capacity for any person on any matter in which the public official445
or employee personally participated as a public official or446
employee through decision, approval, disapproval, recommendation,447
the rendering of advice, investigation, or other substantial448
exercise of administrative discretion.449

       (2) For twenty-four months after the conclusion of service,450
no former commissioner or attorney examiner of the public451
utilities commission shall represent a public utility, as defined452
in section 4905.02 of the Revised Code, or act in a representative453
capacity on behalf of such a utility before any state board,454
commission, or agency.455

       (3) For twenty-four months after the conclusion of employment 456
or service, no former public official or employee who personally 457
participated as a public official or employee through decision, 458
approval, disapproval, recommendation, the rendering of advice, 459
the development or adoption of solid waste management plans, 460
investigation, inspection, or other substantial exercise of461
administrative discretion under Chapter 343. or 3734. of the462
Revised Code shall represent a person who is the owner or operator463
of a facility, as defined in section 3734.01 of the Revised Code,464
or who is an applicant for a permit or license for a facility465
under that chapter, on any matter in which the public official or466
employee personally participated as a public official or employee.467

       (4) For a period of one year after the conclusion of468
employment or service as a member or employee of the general469
assembly, no former member or employee of the general assembly470
shall represent, or act in a representative capacity for, any471
person on any matter before the general assembly, any committee of472
the general assembly, or the controlling board. Division (A)(4) of 473
this section does not apply to or affect a person who separates474
from service with the general assembly on or before December 31,475
1995. As used in division (A)(4) of this section "person" does not 476
include any state agency or political subdivision of the state.477

       (5) As used in divisions (A)(1), (2), and (3) of this478
section, "matter" includes any case, proceeding, application,479
determination, issue, or question, but does not include the480
proposal, consideration, or enactment of statutes, rules,481
ordinances, resolutions, or charter or constitutional amendments.482
As used in division (A)(4) of this section, "matter" includes the483
proposal, consideration, or enactment of statutes, resolutions, or484
constitutional amendments. As used in division (A) of this485
section, "represent" includes any formal or informal appearance486
before, or any written or oral communication with, any public487
agency on behalf of any person.488

       (6) Nothing contained in division (A) of this section shall489
prohibit, during such period, a former public official or employee490
from being retained or employed to represent, assist, or act in a491
representative capacity for the public agency by which the public492
official or employee was employed or on which the public official493
or employee served.494

       (7) Division (A) of this section shall not be construed to495
prohibit the performance of ministerial functions, including, but496
not limited to, the filing or amendment of tax returns,497
applications for permits and licenses, incorporation papers, and498
other similar documents.499

       (B) No present or former public official or employee shall500
disclose or use, without appropriate authorization, any501
information acquired by the public official or employee in the502
course of the public official's or employee's official duties that503
is confidential because of statutory provisions, or that has been504
clearly designated to the public official or employee as505
confidential when that confidential designation is warranted506
because of the status of the proceedings or the circumstances507
under which the information was received and preserving its508
confidentiality is necessary to the proper conduct of government509
business.510

       (C) No public official or employee shall participate within511
the scope of duties as a public official or employee, except512
through ministerial functions as defined in division (A) of this513
section, in any license or rate-making proceeding that directly514
affects the license or rates of any person, partnership, trust,515
business trust, corporation, or association in which the public516
official or employee or immediate family owns or controls more517
than five per cent. No public official or employee shall518
participate within the scope of duties as a public official or519
employee, except through ministerial functions as defined in520
division (A) of this section, in any license or rate-making521
proceeding that directly affects the license or rates of any522
person to whom the public official or employee or immediate523
family, or a partnership, trust, business trust, corporation, or524
association of which the public official or employee or the public525
official's or employee's immediate family owns or controls more526
than five per cent, has sold goods or services totaling more than527
one thousand dollars during the preceding year, unless the public528
official or employee has filed a written statement acknowledging529
that sale with the clerk or secretary of the public agency and the530
statement is entered in any public record of the agency's531
proceedings. This division shall not be construed to require the532
disclosure of clients of attorneys or persons licensed under533
section 4732.12 or 4732.15 of the Revised Code, or patients of534
persons certified under section 4731.14 of the Revised Code.535

       (D) No public official or employee shall use or authorize the 536
use of the authority or influence of office or employment to537
secure anything of value or the promise or offer of anything of538
value that is of such a character as to manifest a substantial and539
improper influence upon the public official or employee with540
respect to that person's duties.541

       (E) No public official or employee shall solicit or accept542
anything of value that is of such a character as to manifest a543
substantial and improper influence upon the public official or544
employee with respect to that person's duties.545

       (F) No person shall promise or give to a public official or546
employee anything of value that is of such a character as to547
manifest a substantial and improper influence upon the public548
official or employee with respect to that person's duties.549

       (G) In the absence of bribery or another offense under the550
Revised Code or a purpose to defraud, contributions made to a551
campaign committee, political party, legislative campaign fund,552
political action committee, or political contributing entity on553
behalf of an elected public officer or other public official or554
employee who seeks elective office shall be considered to accrue555
ordinarily to the public official or employee for the purposes of556
divisions (D), (E), and (F) of this section.557

       As used in this division, "contributions," "campaign558
committee," "political party," "legislative campaign fund,"559
"political action committee," and "political contributing entity"560
have the same meanings as in section 3517.01 of the Revised Code.561

       (H)(1) No public official or employee, except for the562
president or other chief administrative officer of or a member of563
a board of trustees of a state institution of higher education as564
defined in section 3345.011 of the Revised Code, who is required565
to file a financial disclosure statement under section 102.02 of566
the Revised Code shall solicit or accept, and no person shall give 567
to that public official or employee, an honorarium. This division 568
and divisions (D), (E), and (F) of this section do not prohibit a569
public official or employee who is required to file a financial570
disclosure statement under section 102.02 of the Revised Code from571
accepting and do not prohibit a person from giving to that public572
official or employee the payment of actual travel expenses,573
including any expenses incurred in connection with the travel for574
lodging, and meals, food, and beverages provided to the public575
official or employee at a meeting at which the public official or576
employee participates in a panel, seminar, or speaking engagement577
or provided to the public official or employee at a meeting or578
convention of a national organization to which any state agency,579
including, but not limited to, any state legislative agency or580
state institution of higher education as defined in section581
3345.011 of the Revised Code, pays membership dues. ThisExcept as 582
provided in division (H)(2) of this section, this division and 583
divisions (D), (E), and (F) of this section do not prohibit a584
public official or employee who is not required to file a585
financial disclosure statement under section 102.02 of the Revised586
Code from accepting and do not prohibit a person from promising or587
giving to that public official or employee an honorarium or the588
payment of travel, meal, and lodging expenses if the honorarium,589
expenses, or both were paid in recognition of demonstrable590
business, professional, or esthetic interests of the public591
official or employee that exist apart from public office or592
employment, including, but not limited to, such a demonstrable593
interest in public speaking and were not paid by any person or594
other entity, or by any representative or association of those595
persons or entities, that is regulated by, doing business with, or596
seeking to do business with the department, division, institution,597
board, commission, authority, bureau, or other instrumentality of598
the governmental entity with which the public official or employee599
serves.600

       (2) No person who is a member of the board of a state 601
retirement system, a state retirement system investment officer, 602
or an employee of a state retirement system whose position 603
involves substantial and material exercise of discretion in the 604
investment of retirement system funds shall solicit or accept, and 605
no person shall give to that board member, officer, or employee, 606
payment of actual travel expenses, including expenses incurred 607
with the travel for lodging, meals, food, and beverages.608

       (I) A public official or employee may accept travel, meals,609
and lodging or expenses or reimbursement of expenses for travel,610
meals, and lodging in connection with conferences, seminars, and611
similar events related to official duties if the travel, meals,612
and lodging, expenses, or reimbursement is not of such a character613
as to manifest a substantial and improper influence upon the614
public official or employee with respect to that person's duties.615
The house of representatives and senate, in their code of ethics,616
and the Ohio ethics commission, under section 111.15 of the617
Revised Code, may adopt rules setting standards and conditions for618
the furnishing and acceptance of such travel, meals, and lodging,619
expenses, or reimbursement.620

       A person who acts in compliance with this division and any621
applicable rules adopted under it, or any applicable, similar622
rules adopted by the supreme court governing judicial officers and623
employees, does not violate division (D), (E), or (F) of this624
section. This division does not preclude any person from seeking625
an advisory opinion from the appropriate ethics commission under626
section 102.08 of the Revised Code.627

       (J) For purposes of divisions (D), (E), and (F) of this628
section, the membership of a public official or employee in an629
organization shall not be considered, in and of itself, to be of630
such a character as to manifest a substantial and improper631
influence on the public official or employee with respect to that632
person's duties. As used in this division, "organization" means a633
church or a religious, benevolent, fraternal, or professional634
organization that is tax exempt under subsection 501(a) and635
described in subsection 501(c)(3), (4), (8), (10), or (19) of the636
"Internal Revenue Code of 1986." This division does not apply to a 637
public official or employee who is an employee of an organization, 638
serves as a trustee, director, or officer of an organization, or 639
otherwise holds a fiduciary relationship with an organization. 640
This division does not allow a public official or employee who is 641
a member of an organization to participate, formally or 642
informally, in deliberations, discussions, or voting on a matter 643
or to use his official position with regard to the interests of 644
the organization on the matter if the public official or employee 645
has assumed a particular responsibility in the organization with 646
respect to the matter or if the matter would affect that person's 647
personal, pecuniary interests.648

       (K) It is not a violation of this section for a prosecuting649
attorney to appoint assistants and employees in accordance with650
division (B) of section 309.06 and section 2921.421 of the Revised651
Code, for a chief legal officer of a municipal corporation or an652
official designated as prosecutor in a municipal corporation to653
appoint assistants and employees in accordance with sections654
733.621 and 2921.421 of the Revised Code, for a township law655
director appointed under section 504.15 of the Revised Code to656
appoint assistants and employees in accordance with sections657
504.151 and 2921.421 of the Revised Code, or for a coroner to658
appoint assistants and employees in accordance with division (B)659
of section 313.05 of the Revised Code.660

       As used in this division, "chief legal officer" has the same661
meaning as in section 733.621 of the Revised Code.662

       Sec. 102.06.  (A) The appropriate ethics commission shall663
receive and may initiate complaints against persons subject to664
Chapter 102. of the Revised Code concerning conduct alleged to be665
in violation of this chapter or section 2921.42 or 2921.43 of the666
Revised Code. All complaints except those by the commission shall667
be by affidavit made on personal knowledge, subject to the668
penalties of perjury. Complaints by the commission shall be by669
affidavit, based upon reasonable cause to believe that a violation670
has occurred.671

       (B) The commission shall investigate complaints, may672
investigate charges presented to it, and may request further673
information, including the specific amount of income from a674
source, from any person filing with the commission a statement675
required by section 102.02 of the Revised Code, if the information676
sought is directly relevant to a complaint or charges received by677
the commission pursuant to this section. This information is678
confidential, except that the commission, at its discretion, may679
share information gathered in the course of any investigation680
with, or disclose the information to, the inspector general, any681
appropriate prosecuting authority, any law enforcement agency, or682
any other appropriate ethics commission. The person so requested683
shall furnish the information to the commission, unless within684
fifteen days from the date of the request the person files an685
action for declaratory judgment challenging the legitimacy of the686
request in the court of common pleas of the county of the person's687
residence, the person's place of employment, or Franklin county. 688
The requested information need not be furnished to the commission 689
during the pendency of the judicial proceedings. Proceedings of 690
the commission in connection with the declaratory judgment action691
shall be kept confidential except as otherwise provided by this692
section. Before the commission proceeds to take any formal action693
against a person who is the subject of an investigation based on694
charges presented to the commission, a complaint shall be filed695
against the person. If the commission finds that a complaint is696
not frivolous, and there is reasonable cause to believe that the697
facts alleged in a complaint constitute a violation of section698
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised699
Code, it shall hold a hearing. If the commission does not so find, 700
it shall dismiss the complaint and notify the accused person in 701
writing of the dismissal of the complaint. The commission shall 702
not make a report of its finding unless the accused person703
requests a report. Upon the request of the accused person, the704
commission shall make a public report of its finding. The person705
against whom the complaint is directed shall be given reasonable706
notice by certified mail of the date, time, and place of the707
hearing and a statement of the charges and the law directly708
involved and shall be given the opportunity to be represented by709
counsel, to have counsel appointed for the person if the person is 710
unable to afford counsel without undue hardship, to examine the 711
evidence against the person, to produce evidence and to call and712
subpoena witnesses in the person's defense, to confront the 713
person's accusers, and to cross-examine witnesses. The commission 714
shall have a stenographic record made of the hearing. The hearing 715
shall be closed to the public.716

       (C)(1)(a) If upon the basis of the hearing, the commission717
finds by a preponderance of the evidence that the facts alleged in718
the complaint are true and constitute a violation of section719
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised720
Code, it shall report its findings to the appropriate prosecuting721
authority for proceedings in prosecution of the violation and to722
the appointing or employing authority of the accused. If the 723
accused person is a member of the public employees retirement 724
board, state teachers retirement board, school employees 725
retirement board, board of trustees of the Ohio police and fire 726
pension fund, or state highway patrol retirement board, the 727
commission also shall report its findings to the Ohio retirement 728
study council.729

       (b) If the Ohio ethics commission reports its findings to the 730
appropriate prosecuting authority under division (C)(1)(a) of this 731
section and the prosecuting authority has not initiated any732
official action on those findings within ninety days after733
receiving the commission's report of them, then the commission may734
publicly comment that no official action has been taken on its735
findings, except that the commission shall make no comment in736
violation of the Rules of Criminal Procedure or about any737
indictment that has been sealed pursuant to any law or those738
rules. The commission shall make no comment regarding the merits739
of its findings. As used in division (C)(1)(b) of this section,740
"official action" means prosecution, closure after investigation,741
or grand jury action resulting in a true bill of indictment or no742
true bill of indictment.743

       (2) If the appropriate ethics commission does not find by a744
preponderance of the evidence that the facts alleged in the745
complaint are true and constitute a violation of section 102.02,746
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code or747
if the commission has not scheduled a hearing within ninety days748
after the complaint is filed or has not finally disposed of the749
complaint within six months after it has been heard, it shall750
dismiss the complaint and notify the accused person in writing of751
the dismissal of the complaint. The commission shall not make a752
report of its finding unless the accused person requests a report.753
Upon the request of the accused person, the commission shall make754
a public report of the finding, but in this case all evidence and755
the record of the hearing shall remain confidential unless the756
accused person also requests that the evidence and record be made757
public. Upon request by the accused person, the commission shall758
make the evidence and the record available for public inspection.759

       (D) The commission, or a member of the commission, may760
administer oaths, and the commission may issue subpoenas to any761
person in the state compelling the attendance of witnesses and the762
production of relevant papers, books, accounts, and records. The763
commission shall issue subpoenas to compel the attendance of764
witnesses and the production of documents upon the request of an765
accused person. Section 101.42 of the Revised Code shall govern766
the issuance of these subpoenas insofar as applicable. Upon the767
refusal of any person to obey a subpoena or to be sworn or to768
answer as a witness, the commission may apply to the court of769
common pleas of Franklin county under section 2705.03 of the770
Revised Code. The court shall hold proceedings in accordance with771
Chapter 2705. of the Revised Code. The commission or the accused772
person may take the depositions of witnesses residing within or773
without the state in the same manner as prescribed by law for the774
taking of depositions in civil actions in the court of common775
pleas.776

       (E) At least once each year, the Ohio ethics commission shall 777
report on its activities of the immediately preceding year to the 778
majority and minority leaders of the senate and house of779
representatives of the general assembly. The report shall indicate 780
the total number of complaints received, initiated, and781
investigated by the commission, the total number of complaints for782
which formal hearings were held, and the total number of783
complaints for which formal prosecution was recommended or784
requested by the commission. The report also shall indicate the785
nature of the inappropriate conduct alleged in each complaint and786
the governmental entity with which any employee or official that787
is the subject of a complaint was employed at the time of the788
alleged inappropriate conduct.789

       (F) All papers, records, affidavits, and documents upon any790
complaint, inquiry, or investigation relating to the proceedings791
of the appropriate commission shall be sealed and are private and792
confidential, except as otherwise provided in this section and793
section 102.07 of the Revised Code.794

       (G)(1) When a complaint or charge is before it, the Ohio795
ethics commission or the appropriate prosecuting authority, in796
consultation with the person filing the complaint or charge, the797
accused, and any other person the commission or prosecuting798
authority considers necessary, may compromise or settle the799
complaint or charge with the agreement of the accused. The800
compromise or settlement may include mediation, restitution,801
rescission of affected contracts, forfeiture of any benefits802
resulting from a violation or potential violation of law,803
resignation of a public official or employee, or any other relief804
that is agreed upon between the commission or prosecuting805
authority and the accused.806

       (2) Any settlement agreement entered into under division807
(G)(1) of this section shall be in writing and be accompanied by a808
statement of the findings of the commission or prosecuting809
authority and the reasons for entering into the agreement. The810
commission or prosecuting authority shall retain the agreement and811
statement in the commission's or prosecuting attorney's812
authority's office and, in the commission's or prosecuting813
authority's discretion, may make the agreement, the statement, and814
any supporting information public, unless the agreement provides815
otherwise.816

       (3) If a settlement agreement is breached by the accused, the 817
commission or prosecuting authority, in the commission's or 818
prosecuting authority's discretion, may rescind the agreement and819
reinstitute any investigation, hearing, or prosecution of the820
accused. No information obtained from the accused in reaching the821
settlement that is not otherwise discoverable from the accused822
shall be used in any proceeding before the commission or by the823
appropriate prosecuting authority in prosecuting the violation.824
Notwithstanding any other section of the Revised Code, if a825
settlement agreement is breached, any statute of limitations for a826
violation of this chapter or section 2921.42 or 2921.43 of the827
Revised Code is tolled from the date the complaint or charge is828
filed until the date the settlement agreement is breached.829

       Sec. 109.98. As used in this section, "state retirement 830
board" means the public employees retirement board, board of 831
trustees of the Ohio police and fire pension fund, school 832
employees retirement board, state teachers retirement board, and 833
state highway patrol retirement board.834

       If a member of a state retirement board breaches the member's 835
fiduciary duty to the retirement system, the attorney general may 836
maintain a civil action against the board member for harm 837
resulting from that breach. The attorney general may recover 838
damages or be granted injunctive relief, which shall include the 839
enjoinment of specified activities and the removal of the member 840
from the board. Any damages awarded shall be paid to the 841
retirement system.842

       Sec. 111.30. (A) As used in this section, "state retirement 843
board" means the public employees retirement board, board of 844
trustees of the Ohio police and fire pension fund, school 845
employees retirement board, state teachers retirement board, and 846
state highway patrol retirement board.847

       (B) The secretary of state shall do all of the following:848

       (1) Adopt rules in accordance with Chapter 119. of the 849
Revised Code governing the election of state retirement board 850
members under sections 145.05, 742.04, 3307.07, 3309.07, and 851
5505.041 of the Revised Code, including special elections provided 852
for by section 145.051 of the Revised Code. The rules shall 853
include rules governing nominating petitions for the elections.854

       (2) Oversee the administration of board member elections by 855
state retirement boards;856

       (3) Certify the validity of nominating petitions for the 857
elections;858

       (4) Certify the results of the elections;859

       (5) Prescribe forms for campaign finance disclosure 860
statements for the purpose of sections 145.053, 742.042, 3307.072, 861
3309.072, and 5505.044 of the Revised Code and accept the forms 862
from candidates filing them with the secretary pursuant to those 863
sections;864

       (6) Oversee elections held under sections 145.06, 742.05, 865
3307.06, 3309.06, and 5505.042 of the Revised Code to fill 866
vacancies in the boards;867

       (7) Certify the results of the elections to fill vacancies in 868
the boards.869

       Sec. 117.10.  The auditor of state shall audit all public 870
offices as provided in this chapter. The auditor of state also may 871
audit the accounts of private institutions, associations, boards, 872
and corporations receiving public money for their use and may 873
require of them annual reports in such form as the auditor of 874
state prescribes.875

       If the auditor of state performs or contracts for the 876
performance of an audit, including a special audit, of the public 877
employees retirement system, school employees retirement system, 878
state teachers retirement system, state highway patrol retirement 879
system, or Ohio police and fire pension fund, the auditor of state 880
shall make a timely report of the results of the audit to the Ohio 881
retirement study council.882

       The auditor of state may audit the accounts of any provider 883
as defined in section 5111.06 of the Revised Code, if requested by 884
the department of job and family services.885

       If a public office has been audited by an agency of the 886
United States government, the auditor of state may, if satisfied 887
that the federal audit has been conducted according to principles 888
and procedures not contrary to those of the auditor of state, use 889
and adopt the federal audit and report in lieu of an audit by the 890
auditor of state's own office.891

       Within thirty days after the creation or dissolution or the 892
winding up of the affairs of any public office, that public office 893
shall notify the auditor of state in writing that this action has 894
occurred.895

       Sec. 145.04.  The general administration and management of896
the public employees retirement system and the making effective of897
Chapter 145. of the Revised Code, are hereby vested in a board to898
be known as the "public employees retirement board," which shall899
consist of ninethe following members as follows:900

       (A) The attorney generaltreasurer of state;901

       (B) The auditor of state;902

       (C) The director of administrative services;903

       (D) FiveSix members, known as employee members, one of whom904
shall be a state employee member of the system, who shall be905
elected by ballot by the state employee members of the system from906
among their number; another of whom shall be a county employee907
member of the system, who shall be elected by ballot by the county908
employee members of the system from among their number; another of 909
whom shall be a county elected official member of the system, who 910
shall be elected by ballot by the county elected official members 911
of the system from among their number; another of whom shall be a 912
municipal employee member of the system, who shall be elected by 913
ballot by the municipal employee members of the system from among 914
their number; another of whom shall be a university or college 915
employee member of the system, who shall be elected by ballot by 916
the university and college employee members of the system from 917
among their number; and another of whom shall be a park district, 918
conservancy district, sanitary district, health district, public 919
library, township, metropolitan housing authority, union cemetery, 920
joint hospital, or institutional commissary employee member of the921
system, who shall be elected by ballot by the park district,922
conservancy district, sanitary district, health district,923
metropolitan housing authority, township, public library, union924
cemetery, joint hospital, and institutional commissary employee925
members of the system from among their number, in a manner to be926
approved by the board. Members of the system who are receiving a927
disability benefit under this chapter are ineligible for928
membership on the board as employee members.929

       (E) One member, known as the retirant member, who shall be a930
former member of the public employees retirement system who is a931
resident of this state and a recipient of age and service932
retirement, a disability benefit, or benefits paid under a PERS933
defined contribution plan. The retirant member shall be elected by934
ballot by former members of the system who are receiving age and935
service retirement, a disability benefit, or benefits paid under a936
PERS defined contribution plan;937

       (F) One member, known as the university or college 938
administrator member, who shall be a university or college 939
administrator appointed by the governor. The administrator 940
member's term shall be for four years, beginning on January 1 and 941
ending on December 31. The initial administrator member shall be 942
appointed and take office on the January 1 that occurs not less 943
than ninety days after the effective date of this amendment.944

       Any university or college administrator appointed to fill a 945
vacancy occurring prior to the expiration of the term for which 946
the administrator member's predecessor was appointed shall hold 947
office until the end of such term. The administrator member shall 948
continue in office subsequent to the expiration date of the 949
member's term until the member's successor takes office, or until 950
a period of sixty days has elapsed, whichever occurs first.951

       Sec. 145.041. Each newly elected member of the public 952
employees retirement board and each individual appointed to fill a 953
vacancy on the board, shall, not later than ninety days after 954
commencing service as a board member, complete the orientation 955
program component of the retirement board member education program 956
established under section 171.50 of the Revised Code.957

       Each member of the board who has served a year or longer as a 958
board member shall, not less than twice each year, attend one or 959
more programs that are part of the continuing education component 960
of the retirement board member education program established under 961
section 171.50 of the Revised Code.962

       Sec. 145.05.  (A) The terms of office of employee members of963
the public employees retirement board shall be for four years each964
beginning on the first day of January following election. The965
election of the county employee member of the board and the966
employee member of the board representing public library, health967
district, park district, conservancy district, sanitary district,968
township, metropolitan housing authority, union cemetery, joint969
hospital, and institutional commissary employees shall be held on970
the first Monday in October, 1945, and on the first Monday in971
October in each fourth year thereafter. The election of the state972
employee member of the board and the municipal employee member of973
the board shall be held on the first Monday in October, 1946, and974
on the first Monday in October in each fourth year thereafter. The975
election of the initial university-college employee member of the976
board shall be held on the first Monday in October, 1978, and977
elections for subsequent university-college employee members of978
the board shall be held on the first Monday in October in each979
fourth year thereafter. The election of the county elected 980
official employee member shall be held on the first Monday in 981
October that occurs not less than ninety days after the effective 982
date of this amendment, and elections for subsequent county 983
elected official employee members of the board shall be held on 984
the first Monday in October in each fourth year thereafter.985

       (B) The term of office of the retirant member of the public986
employees retirement board shall be for four years beginning on987
the first day of January following the election. The election of988
the initial retirant member of the board shall be held on the989
first Monday in October, 1978, and elections for subsequent990
retirant members of the board shall be held on the first Monday in991
October in each fourth year thereafter.992

       (C) All elections for employee members of the public993
employees retirement board shall be held under the direction of994
the board in accordance with rules adopted under section 111.30 of 995
the Revised Code. Any member of the public employees retirement 996
system, except a member who is receiving a disability benefit 997
under this chapter, is eligible for election as an employee member 998
of the board to represent the employee group that includes the 999
member, provided that the member has been nominated by a petition 1000
that is signed by at least five hundred members of the employee 1001
group to be represented and further provided that there shall be, 1002
including not less than twenty such signers from each of at least 1003
ten counties of the state, and certified under section 111.30 of 1004
the Revised Code. The name of any member so nominated shall be 1005
placed upon the ballot by the board as a regular candidate. Names 1006
of other eligible candidates may, at any election, be substituted1007
for the regular candidates by writing such names upon the ballots. 1008
The candidate who receives the highest number of votes for a1009
particular employee member position on the board shall be elected1010
to that office on certification of the election results under 1011
section 111.30 of the Revised Code.1012

       (D) All elections for the retirant member of the public1013
employees retirement board shall be held under the direction of1014
the board in accordance with rules adopted under section 111.30 of 1015
the Revised Code. Any former member of the public employees 1016
retirement system who is described in division (E) of section 1017
145.04 of the Revised Code is eligible for election as the 1018
retirant member of the board to represent recipients of age and 1019
service retirement, a disability benefit, or benefits paid under a1020
PERS defined contribution plan, provided that such person has been 1021
nominated by a petition that is signed by any combination of at 1022
least two hundred fifty eligible, former members of the system who1023
are recipientsand certified under section 111.30 of the Revised 1024
Code. To be eligible to sign the petition, a former member of the 1025
system must be a recipient of age and service retirement, a1026
disability benefit, or benefits paid under a PERS defined1027
contribution plan, or any combination of such recipients that1028
totals two hundred fifty. The petition shall contain the1029
signatures of at least ten such recipients from each of at least1030
five counties wherein recipients of benefits from the system1031
reside.1032

       The name of any person nominated in this manner shall be1033
placed upon the ballot by the board as a regular candidate. Names1034
of other eligible candidates may, at any election for the retirant1035
member of the board, be substituted for the regular candidates by1036
writing the names of such persons upon the ballot. The candidate1037
who receives the highest number of votes for any term as the1038
retirant member of the board shall be elected to office on 1039
certification of the election results under section 111.30 of the 1040
Revised Code.1041

       Sec. 145.051. If a person elected to serve on the public 1042
employees retirement board is unable to assume office at the 1043
January meeting of the board following the person's election, a 1044
special election shall be held in accordance with the provisions 1045
of section 145.05 of the Revised Code within three months of the 1046
January meeting. On certification of the elections results under 1047
section 111.30 of the Revised Code, the newly elected person shall 1048
assume office at the meeting of the board immediately following 1049
the special election.1050

       Sec. 145.051.        Sec. 145.052.  Notwithstanding sections 145.04 and 1051
145.05 of the Revised Code, the public employees retirement board 1052
is not required to hold an election, including a special election 1053
under section 145.06145.051 of the Revised Code, for a position1054
on the board as an employee member or retirant member if only one 1055
candidate has been nominated for the position by petition in1056
accordance with section 145.05 of the Revised Code. The candidate 1057
shall take office as if elected. The term of office shall be four 1058
years beginning on the first day of January following the date the1059
candidate was nominated.1060

       Sec. 145.053.  (A) As used in this section:1061

       (1) "Campaign committee" means a candidate or a combination 1062
of two or more persons authorized by a candidate to receive 1063
contributions and in-kind contributions and make expenditures on 1064
behalf of the candidate. 1065

       (2) "Candidate" means an individual who has been nominated 1066
pursuant to division (C) or (D) of section 145.05 of the Revised 1067
Code for election to the public employees retirement board.1068

       (3) "Contribution" means a loan, gift, deposit, forgiveness 1069
of indebtedness, donation, advance, payment, transfer of funds or 1070
transfer of anything of value including a transfer of funds from 1071
an inter vivos or testamentary trust or decedent's estate, and the 1072
payment by any person other than the person to whom the services 1073
are rendered for the personal services of another person, which 1074
contribution is made, received, or used for the purpose of 1075
influencing the results of an election to the public employees 1076
retirement board under section 145.05 of the Revised Code, 1077
including a special election provided for by section 145.051 of 1078
the Revised Code. "Contribution" does not include: 1079

       (a) Services provided without compensation by individuals 1080
volunteering a portion or all of their time on behalf of a person; 1081

       (b) Ordinary home hospitality; 1082

       (c) The personal expenses of a volunteer paid for by that 1083
volunteer campaign worker.1084

       (4) "Election day" means the following, as appropriate to the 1085
situation:1086

       (a) The first Monday in October of a year for which section 1087
145.05 of the Revised Code specifies that an election for a member 1088
of the public employees retirement board be held;1089

       (b) If, pursuant to section 145.052 of the Revised Code, no 1090
election is held, the first Monday in October of a year that the 1091
election would have been held if not for section 145.052 of the 1092
Revised Code;1093

       (c) If the election is a special election provided for by 1094
section 145.051 of the Revised Code, a day that the board shall 1095
specify that is consistent with requirements for a special 1096
election established by section 145.051 of the Revised Code.1097

       (5) "Expenditure" means the disbursement or use of a 1098
contribution for the purpose of influencing the results of an 1099
election to the public employees retirement board under section 1100
145.05 of the Revised Code, including a special election provided 1101
for by section 145.051 of the Revised Code.1102

       (6) "Independent expenditure" has the same meaning as in 1103
section 3517.01 of the Revised Code.1104

       (7) "In-kind contribution" means anything of value other than 1105
money that is used to influence the results of an election to the 1106
public employees retirement board under section 145.05 of the 1107
Revised Code, including a special election provided for by section 1108
145.051 of the Revised Code, or is transferred to or used in 1109
support of or in opposition to a candidate and that is made with 1110
the consent of, in coordination, cooperation, or consultation 1111
with, or at the request or suggestion of the benefited candidate. 1112
The financing of the dissemination, distribution, or 1113
republication, in whole or part, of any broadcast or of any 1114
written, graphic, or other form of campaign materials prepared by 1115
the candidate, the candidate's campaign committee, or their 1116
authorized agents is an in-kind contribution to the candidate and 1117
an expenditure by the candidate.1118

       (8) "Personal expenses" includes ordinary expenses for 1119
accommodations, clothing, food, personal motor vehicle or 1120
airplane, and home telephone. 1121

       (B) Each candidate who, or whose campaign committee, receives 1122
a contribution or in-kind contribution or makes an expenditure in 1123
connection with the candidate's efforts to be elected to the 1124
public employees retirement board shall file with the secretary of 1125
state two complete, accurate, and itemized statements setting 1126
forth in detail the contributions, in-kind contributions, and 1127
expenditures. The statements shall be filed regardless of whether 1128
the election is a regular election or, pursuant to section 145.051 1129
of the Revised Code, a special election. The statements shall also 1130
be filed regardless of whether, pursuant to section 145.052 of the 1131
Revised Code, no election is held. The statements shall be made on 1132
a form prescribed under section 111.30 of the Revised Code.1133

        The first statement shall be filed not later than four p.m. 1134
on the day that is twelve days before election day. The second 1135
statement shall be filed not sooner than the day that is eight 1136
days after election day and not later than thirty-eight days after 1137
election day. The first statement shall reflect contributions and 1138
in-kind contributions received and expenditures made to the close 1139
of business on the twentieth day before election day. The second 1140
statement shall reflect contributions and in-kind contributions 1141
received and expenditures made during the period beginning on the 1142
nineteenth day before election day and ending on the close of 1143
business on the seventh day after election day.1144

       (C) Each individual, partnership, or other entity that makes 1145
an expenditure in connection with the candidate's efforts to be 1146
elected to the public employees retirement board shall file with 1147
the secretary of state two complete, accurate, and itemized 1148
statements setting forth in detail the expenditures. The 1149
statements shall be filed regardless of whether the election is a 1150
regular election or, pursuant to section 145.051 of the Revised 1151
Code, a special election. The statements also shall be filed 1152
regardless of whether, pursuant to section 145.052 of the Revised 1153
Code, no election is held. The statements shall be made on a form 1154
prescribed under section 111.30 of the Revised Code. 1155

       The first statement shall be filed not later than four p.m. 1156
on the day that is twelve days before election day. The second 1157
statement shall be filed not sooner than the day that is eight 1158
days after election day and not later than thirty-eight days after 1159
election day. The first statement shall reflect expenditures made 1160
to the close of business on the twentieth day before election day. 1161
The second statement shall reflect expenditures made during the 1162
period beginning on the nineteenth day before election day and 1163
ending on the close of business on the seventh day after election 1164
day.1165

       Sec. 145.054. (A) No person shall knowingly fail to file a 1166
complete and accurate statement in accordance with section 145.053 1167
of the Revised Code. 1168

       (B) No person, during the course of a person seeking 1169
nomination for, or during any campaign for, election to the public 1170
employees retirement board, shall knowingly and with intent to 1171
affect the nomination or the outcome of the campaign do any of the 1172
following by means of campaign materials, an advertisement on 1173
radio or television or in a newspaper or periodical, a public 1174
speech, press release, or otherwise: 1175

       (1) With regard to a candidate, identify the candidate in a 1176
manner that implies that the candidate is a member of the board or 1177
use the term "re-elect" when the candidate is not currently a 1178
member of the board; 1179

       (2) Make a false statement concerning the formal schooling or 1180
training completed or attempted by a candidate; a degree, diploma, 1181
certificate, scholarship, grant, award, prize, or honor received, 1182
earned, or held by a candidate; or the period of time during which 1183
a candidate attended any school, college, community technical 1184
school, or institution; 1185

       (3) Make a false statement concerning the professional, 1186
occupational, or vocational licenses held by a candidate, or 1187
concerning any position the candidate held for which the candidate 1188
received a salary or wages; 1189

       (4) Make a false statement that a candidate or public 1190
official has been indicted or convicted of a theft offense, 1191
extortion, or other crime involving financial corruption or moral 1192
turpitude; 1193

       (5) Make a statement that a candidate has been indicted for 1194
any crime or has been the subject of a finding by the Ohio 1195
elections commission without disclosing the outcome of any legal 1196
proceedings resulting from the indictment or finding; 1197

       (6) Make a false statement that a candidate or official has a 1198
record of treatment or confinement for mental disorder; 1199

       (7) Make a false statement that a candidate or official has 1200
been subjected to military discipline for criminal misconduct or 1201
dishonorably discharged from the armed services; 1202

       (8) Falsely identify the source of a statement, issue 1203
statements under the name of another person without authorization, 1204
or falsely state the endorsement of or opposition to a candidate 1205
by a person or publication; 1206

       (9) Make a false statement concerning the voting record of a 1207
candidate or public official; 1208

       (10) Post, publish, circulate, distribute, or otherwise 1209
disseminate a false statement concerning a candidate, either 1210
knowing the same to be false or with reckless disregard of whether 1211
it was false or not, if the statement is designed to promote the 1212
election, nomination, or defeat of the candidate. 1213

       Sec. 145.055.  The secretary of state, or any person acting 1214
on personal knowledge and subject to the penalties of perjury, may 1215
file a complaint with the Ohio elections commission alleging a 1216
violation of section 145.054 of the Revised Code. The complaint 1217
shall be made on a form prescribed and provided by the commission. 1218

       On receipt of a complaint under this section, the commission 1219
shall hold a hearing open to the public to determine whether the 1220
violation alleged in the complaint has occurred. The commission 1221
may administer oaths and issue subpoenas to any person in the 1222
state compelling the attendance of witnesses and the production of 1223
relevant papers, books, accounts, and reports. On the refusal of 1224
any person to obey a subpoena or to be sworn or to answer as a 1225
witness, the commission may apply to the court of common pleas of 1226
Franklin county under section 2705.03 of the Revised Code. The 1227
court shall hold contempt proceedings in accordance with Chapter 1228
2705. of the Revised Code.1229

       The commission shall provide the person accused of the 1230
violation at least seven days prior notice of the time, date, and 1231
place of the hearing. The accused may be represented by an 1232
attorney and shall have an opportunity to present evidence, call 1233
witnesses, and cross-examine witnesses. 1234

       At the hearing, the commission shall determine whether the 1235
violation alleged in the complaint has occurred. If the commission 1236
determines that a violation of division (A) of section 145.054 of 1237
the Revised Code has occurred, the commission shall either impose 1238
a fine under section 145.99 of the Revised Code or enter a finding 1239
that good cause has been shown not to impose the fine. If the 1240
commission determines that a violation of division (B) of section 1241
145.054 of the Revised Code has occurred, the commission shall 1242
impose the fine described in section 145.99 of the Revised Code, 1243
refer the matter to the appropriate prosecutor, or enter a finding 1244
that good cause has been shown not to impose a fine or refer the 1245
matter to a prosecutor.1246

       Sec. 145.057.  An employee member or retirant member of the 1247
public employees retirement board who is charged with committing a 1248
felony, a theft offense as defined in section 2913.01 of the 1249
Revised Code, or a violation of section 102.02, 102.03, 102.04, 1250
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 1251
2921.44 of the Revised Code shall be suspended from participation 1252
on the board for the period during which the charges are pending. 1253
If the charges are dismissed, the member is found not guilty, or 1254
the charges are otherwise resolved in a manner not resulting in 1255
the member being convicted of or pleading guilty to an offense of 1256
that nature, the suspension shall end, and the member may 1257
participate on the board. If the member pleads guilty to or is 1258
convicted of the offense, the position of the member on the board 1259
shall be deemed vacant. A person who has pleaded guilty to or been 1260
convicted of an offense of that nature is ineligible for election 1261
to the office of employee member or retirant member of the public 1262
employees retirement board.1263

        The Ohio retirement study council may hold a hearing to 1264
determine whether to remove an employee member or retirant member 1265
of the public employees retirement board who has been suspended 1266
pursuant to this section. If it decides to hold a hearing, the 1267
council shall provide the suspended board member at least seven 1268
days prior notice of the time, date, and place of the hearing. The 1269
suspended board member may be represented by an attorney. At the 1270
hearing the suspended board member, or the suspended board 1271
member's attorney, shall have an opportunity to present evidence, 1272
call witnesses, and cross-examine witnesses. The hearing shall be 1273
open to the public. At the conclusion of the hearing, if the 1274
voting members of the council unanimously vote to remove the 1275
suspended board member, the suspended board member shall be 1276
removed from the board, and the position of the member shall be 1277
deemed vacant.1278

       Sec. 145.06.  (A) If a vacancy occurs in the term of any1279
employee member of the public employees retirement board, the1280
remaining members of the board shall elect ana successor employee 1281
member from the employee group lacking representation because of 1282
the vacancy for the unexpired term. On certification of the 1283
election results under section 111.30 of the Revised Code, the 1284
successor employee member shall hold office until the next board 1285
election that occurs not less than ninety days after the successor 1286
employee member's election.1287

       Any employee member of the board who fails to attend the1288
meetings of the board for three months or longer, without valid1289
excuse, shall be considered as having resigned, and the board1290
shall declare the employee member's office vacated as of the date 1291
of the adoption of a proper resolution.1292

       (B) If a vacancy occurs during the term of office of the1293
retirant member of the board, the remaining members of the board1294
shall elect a successor retirant member who, on certification of 1295
the election results under section 111.30 of the Revised Code,1296
shall hold office for the remainder of the predecessor retirant 1297
member's term. The successor retirant member shall be a former 1298
member of the public employees retirement system who is eligible 1299
for election under section 145.04 of the Revised Code as the 1300
retirant member of the board.1301

       If a retirant member of the board fails to attend the1302
meetings of the board for three months or longer, without valid1303
excuse, the retirant member shall be considered as having1304
resigned, and the board shall declare the member's office vacated 1305
as of the date of the adoption of a proper resolution.1306

       If as a result of changed circumstances the retirant member1307
would no longer qualify for membership on the board as the1308
retirant member, the retirant member's office shall be considered 1309
vacant, and a successor retirant member shall be chosen in the 1310
manner specified in this division.1311

       (C) If a person elected to serve on the board is unable to1312
assume office at the January meeting of the board following the 1313
person's election, a special election shall be held in accordance1314
with the provisions of section 145.05 of the Revised Code within1315
three months of the January meeting and the newly elected person1316
shall assume office at the meeting of the board immediately1317
following the special electionElections under this section to 1318
fill a vacancy on the board shall be conducted under the 1319
supervision of the secretary of state pursuant to section 111.30 1320
of the Revised Code.1321

       Sec. 145.09.  The public employees retirement board shall1322
elect from its membership a chairperson, and shall appoint an1323
executive director who shall serve as secretary to the board, an1324
actuary, and other employees as necessary for the transaction of1325
the business of the public employees retirement system. The1326
compensation of all persons so appointed shall be fixed by the1327
board. Every1328

       Effective ninety days after the effective date of this 1329
amendment, the board may not employ a state retirement system 1330
investment officer, as defined in section 1707.01 of the Revised 1331
Code, who does not hold a valid state retirement system investment 1332
officer license issued by the division of securities in the 1333
department of commerce.1334

       Every expense voucher of an employee, officer, or board1335
member of the public employees retirement system shall itemize all 1336
purchases and expenditures.1337

       The board shall perform other functions as required for the1338
proper execution of this chapter, and may adopt rules in 1339
accordance with section 111.15 of the Revised Code for the proper1340
administration and management of this chapter.1341

       The board may take all appropriate action to avoid payment by 1342
the system or its members of federal or state income taxes on 1343
contributions to the system or amounts earned on such1344
contributions.1345

       Notice of proposed rules shall be given to interested parties 1346
and rules adopted by the board shall be published and otherwise 1347
made available. When it files a rule with the joint committee on1348
agency rule review pursuant to section 111.15 of the Revised Code, 1349
the board shall submit to the Ohio retirement study council a copy 1350
of the full text of the rule, and if applicable, a copy of the 1351
rule summary and fiscal analysis required by division (B) of 1352
section 127.18 of the Revised Code.1353

       The board may sue and be sued, plead and be impleaded,1354
contract and be contracted with. All of its business shall be1355
transacted, all of its funds invested, all warrants for money1356
drawn and payments made, and all of its cash and securities and1357
other property shall be held in the name of the board, or in the1358
name of its nominee, provided that nominees are authorized by1359
retirement board resolution for the purpose of facilitating the1360
ownership and transfer of investments.1361

       If the Ohio retirement study council establishes a uniform 1362
format for any report the board is required to submit to the 1363
council, the board shall submit the report in that format.1364

       Sec. 145.092. The public employees retirement board shall do 1365
all of the following:1366

       (A) In consultation with the Ohio ethics commission, review 1367
any existing policy regarding the travel and payment of travel 1368
expenses of members and employees of the public employees 1369
retirement board and adopt rules in accordance with section 145.09 1370
of the Revised Code establishing a new or revised policy regarding 1371
travel and payment of travel expenses;1372

       (B) If the board intends to award a bonus to any employee of 1373
the board, adopt rules in accordance with section 145.09 of the 1374
Revised Code establishing a policy regarding employee bonuses;1375

       (C) Provide copies of the rules adopted under divisions (A) 1376
and (B) of this section to each member of the Ohio retirement 1377
study council;1378

       (D) Submit to the Ohio retirement study council a proposed 1379
operating budget, including a travel budget, for the next 1380
immediate fiscal year and adopt that budget not earlier than sixty 1381
days after it is submitted to the council.1382

       Sec. 145.093. The public employees retirement board shall, in 1383
consultation with the Ohio ethics commission, develop an ethics 1384
policy. The board shall submit this policy to the Ohio retirement 1385
study council for approval.1386

        The council shall review the policy in consultation with the 1387
Ohio ethics commission and, if the council determines that the 1388
policy is adequate, approve the policy. If the council determines 1389
that the policy is inadequate, it shall specify the revisions to 1390
be made and the board shall submit a revised policy. If the 1391
council approves the revised policy, the board shall adopt it. If 1392
not, the board shall make any further revisions required by the 1393
council and adopt the policy.1394

       The board periodically shall provide ethics training to 1395
members and employees of the board. The training shall include 1396
training regarding the requirements and prohibitions of Chapter 1397
102. of the Revised Code and sections 2921.42 and 2921.43 of the 1398
Revised Code and any other training the board considers 1399
appropriate.1400

        The board shall establish a procedure to ensure that each 1401
employee of the board is informed of the procedure for filing a 1402
complaint alleging violation of Chapter 102. of the Revised Code 1403
or section 2921.42 or 2921.43 of the Revised Code with the Ohio 1404
ethics commission or the appropriate prosecuting attorney.1405

       Sec. 145.094.  (A) The public employees retirement board 1406
shall designate a person who is a licensed state retirement system 1407
investment officer to be the chief investment officer for the 1408
public employees retirement system. The board shall notify the 1409
division of securities of the department of commerce in writing of 1410
its designation and of any change in its designation within ten 1411
calendar days of the designation or change.1412

       (B) The chief investment officer shall reasonably supervise 1413
the licensed state retirement system investment officers and other 1414
persons employed by the public employees retirement system with a 1415
view toward preventing violations of Chapter 1707. of the Revised 1416
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and 1417
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 1418
and following, and the "Securities Exchange Act of 1934," 48 Stat. 1419
881, 15 U.S.C. 78a, and following, and the rules and regulations 1420
promulgated under those statutes. This duty of reasonable 1421
supervision shall include the adoption, implementation, and 1422
enforcement of written policies and procedures reasonably designed 1423
to prevent persons employed by the public employees retirement 1424
system from misusing material, nonpublic information in violation 1425
of those laws, rules, and regulations.1426

       For purposes of this division, no chief investment officer 1427
shall be considered to have failed to satisfy the officer's duty 1428
of reasonable supervision if the officer has done all of the 1429
following:1430

       (1) Adopted and implemented written procedures, and a system 1431
for applying the procedures, that would reasonably be expected to 1432
prevent and detect, insofar as practicable, any violation by its 1433
licensed investment officers and other persons employed by the 1434
public employees retirement system;1435

       (2) Reasonably discharged the duties and obligations 1436
incumbent on the chief investment officer by reason of the 1437
established procedures and the system for applying the procedures 1438
when the officer had no reasonable cause to believe that there was 1439
a failure to comply with the procedures and systems;1440

       (3) Reviewed, at least annually, the adequacy of the policies 1441
and procedures established pursuant to this section and the 1442
effectiveness of their implementation.1443

       (C) The chief investment officer shall ensure that securities 1444
transactions are executed in such a manner that the state 1445
retirement system's total costs or proceeds in each transaction 1446
are the most favorable under the circumstances. 1447

       For purposes of this division, no chief investment officer 1448
shall be considered to have failed to satisfy the officer's duty 1449
of best execution if the officer has done both of the following:1450

       (1) Adopted and implemented a written policy that outlines 1451
the criteria used to select broker-dealers that execute securities 1452
transactions on behalf of the public employees retirement system, 1453
which criteria shall include all of the following:1454

       (a) Commissions charged by the broker-dealer, both in the 1455
aggregate and on a per share basis;1456

       (b) The execution speed and trade settlement capabilities of 1457
the broker-dealer;1458

       (c) The responsiveness, reliability and integrity of the 1459
broker-dealer;1460

       (d) The nature and value of research provided by the 1461
broker-dealer; 1462

       (e) Any special capabilities of the broker-dealer.1463

       (2) Reviewed, at least annually, the performance of 1464
broker-dealers that execute securities transactions on behalf of 1465
the public employees retirement system.1466

       Sec. 145.114.  The attorney general may maintain a civil 1467
action under section 109.98 of the Revised Code against a member 1468
of the public employees retirement board for harm resulting from a 1469
breach of the member's fiduciary duty.1470

       Sec. 145.27.  (A)(1) As used in this division, "personal1471
history record" means information maintained by the public1472
employees retirement board on an individual who is a member,1473
former member, contributor, former contributor, retirant, or1474
beneficiary that includes the address, telephone number, social1475
security number, record of contributions, correspondence with the1476
public employees retirement system, or other information the board1477
determines to be confidential.1478

       (2) The records of the board shall be open to public1479
inspection, except that the following shall be excluded, except1480
with the written authorization of the individual concerned:1481

       (a) The individual's statement of previous service and other1482
information as provided for in section 145.16 of the Revised Code;1483

       (b) The amount of a monthly allowance or benefit paid to the1484
individual;1485

       (c) The individual's personal history record.1486

       (B) All medical reports and recommendations required by this1487
chapter are privileged, except that copies of such medical reports1488
or recommendations shall be made available to the personal1489
physician, attorney, or authorized agent of the individual1490
concerned upon written release from the individual or the1491
individual's agent, or when necessary for the proper1492
administration of the fund, to the board assigned physician.1493

       (C) Any person who is a member or contributor of the system1494
shall be furnished with a statement of the amount to the credit of1495
the individual's account upon written request. The board is not1496
required to answer more than one such request of a person in any1497
one year. The board may issue annual statements of accounts to1498
members and contributors.1499

       (D) Notwithstanding the exceptions to public inspection in1500
division (A)(2) of this section, the board may furnish the1501
following information:1502

       (1) If a member, former member, contributor, former1503
contributor, or retirant is subject to an order issued under1504
section 2907.15 of the Revised Code or is convicted of or pleads1505
guilty to a violation of section 2921.41 of the Revised Code, on1506
written request of a prosecutor as defined in section 2935.01 of1507
the Revised Code, the board shall furnish to the prosecutor the1508
information requested from the individual's personal history1509
record.1510

       (2) Pursuant to a court or administrative order issued1511
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised1512
Code, the board shall furnish to a court or child support1513
enforcement agency the information required under that section.1514

       (3) At the written request of any person, the board shall1515
provide to the person a list of the names and addresses of1516
members, former members, contributors, former contributors,1517
retirants, or beneficiaries. The costs of compiling, copying, and1518
mailing the list shall be paid by such person.1519

       (4) Within fourteen days after receiving from the director of 1520
job and family services a list of the names and social security1521
numbers of recipients of public assistance pursuant to section1522
5101.181 of the Revised Code, the board shall inform the auditor1523
of state of the name, current or most recent employer address, and1524
social security number of each member whose name and social1525
security number are the same as that of a person whose name or1526
social security number was submitted by the director. The board1527
and its employees shall, except for purposes of furnishing the1528
auditor of state with information required by this section,1529
preserve the confidentiality of recipients of public assistance in1530
compliance with division (A) of section 5101.181 of the Revised1531
Code.1532

       (5) The system shall comply with orders issued under section1533
3105.87 of the Revised Code.1534

       On the written request of an alternate payee, as defined in1535
section 3105.80 of the Revised Code, the system shall furnish to1536
the alternate payee information on the amount and status of any1537
amounts payable to the alternate payee under an order issued under1538
section 3105.171 or 3105.65 of the Revised Code.1539

       (6) At the request of any person, the board shall make 1540
available to the person copies of all documents, including 1541
resumes, in the board's possession regarding filling a vacancy of 1542
an employee member or retirant member of the board. The person who 1543
made the request shall pay the cost of compiling, copying, and 1544
mailing the documents. The information described in this division 1545
is a public record.1546

       (7) The board shall furnish the personal history records kept 1547
by the board to the secretary of state for the purposes of 1548
certifying an election pursuant to section 111.30 of the Revised 1549
Code.1550

       (E) A statement that contains information obtained from the1551
system's records that is signed by the executive director or an1552
officer of the system and to which the system's official seal is1553
affixed, or copies of the system's records to which the signature1554
and seal are attached, shall be received as true copies of the1555
system's records in any court or before any officer of this state.1556

       Sec. 145.99. (A) Whoever violates division (A) of section 1557
145.054 of the Revised Code shall be fined not more than one 1558
hundred dollars for each day of the violation.1559

       (B) Whoever violates division (B) of section 145.054 of the 1560
Revised Code shall be imprisoned for not more than six months or 1561
fined not more than five thousand dollars, or both. 1562

       (C) Fines imposed by the Ohio elections commission under this 1563
section shall be paid into the Ohio elections commission fund 1564
created under section 3513.10 of the Revised Code.1565

       Sec. 171.01. ThereAs used in this chapter, "state 1566
retirement systems" means the public employees retirement system, 1567
Ohio police and fire pension fund, state teachers retirement 1568
system, school employees retirement system, and state highway 1569
patrol retirement system.1570

       There is hereby created the Ohio retirement study council, 1571
consisting of fourteen members to. Members of the council shall be1572
appointed as follows:1573

       (A) Three members of the senate, appointed by the president 1574
of the senate, not more than two of whom may be members of the 1575
same political party;1576

       (B) Three members of the house of representatives, appointed 1577
by the speaker of the house of representatives, not more than two 1578
of whom may be members of the same political party;1579

       (C) Two members, each of whom shall be a former member of the 1580
general assembly who served at least one term on the council while 1581
a member of the general assembly. One member shall be jointly 1582
appointed by the speaker of the house of representatives and the 1583
president of the senate. The other member shall be jointly 1584
appointed by the minority leaders of the house of representatives 1585
and the senate. The members shall not be members of the same 1586
political party.1587

        The members shall be appointed at the same time as the 1588
members appointed under division (B) of this section and shall 1589
serve until the thirty-first day of December of the following 1590
year.1591

       (D) Three members appointed by the governor, with the advice 1592
and consent of the senate, not more than two of whom shall be 1593
members of the same political party, one of whom shall represent 1594
the state and its employees; one of whom shall represent nonstate 1595
governments and their employees; and one of whom shall represent 1596
educational employers and their employees. Of these three members, 1597
at least one shall be a person with investment expertise. Terms of 1598
the existing members appointed by the governor shall not be1599
affected. Terms of office of members appointed by the governor1600
shall be for three years, commencing on the first day of July and1601
ending on the thirtieth day of June. Each member appointed by the 1602
governor shall hold office from the date of appointment until the 1603
end of the term for which the appointment was made. Any member1604
appointed by the governor to fill a vacancy occurring prior to the 1605
expiration of the term for which the member's predecessor was1606
appointed shall hold office for the remainder of such term. Any1607
Each member appointed by the governor shall continue in office 1608
subsequent to the expiration date of the member's term until the 1609
member's successor takes office, or until a period of sixty days 1610
has elapsed, whichever occurs firstuntil the member's successor 1611
is appointed and qualified, notwithstanding the expiration of the 1612
member's term of office.1613

       (D)(E) Five ex officio members as follows: the executive1614
director of the public employees retirement system, the executive1615
director of the state teachers retirement system, the executive1616
director of the school employees retirement system, the executive1617
secretary of the Ohio police and fire pension fund, and the 1618
secretary of the state highway patrol retirement board, who shall 1619
be nonvoting members.1620

       A vacancy on the council shall be filled by the person1621
qualified to make the original appointment for the unexpired term, 1622
in the same manner as the original appointment.1623

       The members of the council who are appointed from the1624
membership of the senate and the house of representatives shall1625
serve during their terms as members of the general assembly and1626
until their successors are appointed and qualified,1627
notwithstanding the adjournment of the general assembly of which1628
they are members or the expiration of their terms as members of1629
such general assembly.1630

       The members of the council who are former members of the 1631
general assembly shall serve until their successors are appointed 1632
and qualified, notwithstanding the adjournment of the general 1633
assembly during which they were appointed or the expiration of 1634
their terms as members of the council.1635

       Sec. 171.02.  Meetings of the Ohio retirement study council 1636
shall be called in such manner and at such times as prescribed by 1637
rules adopted by the council. A majority of the council 1638
constitutes a quorum and no action shall be taken by the council 1639
unless approved by at least fivesix voting members. The council 1640
shall organize by selecting a chairperson, vice-chairperson, and 1641
such other officers as it deems necessary. The council shall adopt 1642
rules for the conduct of its business and the election of its 1643
officers, and shall establish an office in Columbus. Each member 1644
of the council, before entering upon the member's official duties 1645
shall take and subscribe to an oath of office, to uphold the 1646
constitution and laws of the United States and this state and to 1647
perform the duties of the office honestly, faithfully, and 1648
impartially. Members of the council shall serve without 1649
compensation but shall be reimbursed for actual and necessary 1650
expenses incurred in the performance of their duties.1651

       Sec. 171.03.  The Ohio retirement study council may:1652

       (A) Appoint a director to manage and direct the duties of the 1653
staff of the council. The director shall be a person who has had 1654
training and experience in areas related to the duties of the 1655
council.1656

       (B) Appoint such professional, technical, and clerical1657
employees as are necessary, and employ or hire on a consulting1658
basis such actuarial, legal, investment, or other technical1659
services required for the performance of its duties;1660

       (C) Fix the compensation of the director and all other1661
employees of the council. The employees of the council shall be 1662
members of the public employees retirement system.1663

       (D) Require the public employees retirement board, the state 1664
teachers retirement board, the school employees retirement board, 1665
the state highway patrol retirement system, the Ohio police and1666
fire pension fund, and any agency or official of this state or its 1667
political subdivisions to provide it with any information 1668
necessary to carry out its duties;1669

       (E) Administer oaths and hold public hearings at such times 1670
and places within the state as may be necessary to accomplish the 1671
purposes and intent of Chapter 171. of the Revised Code;1672

       (F) Establish a uniform format for any report that the boards 1673
of the state retirement systems are required to submit to the 1674
council and regular reporting requirements;1675

       (G) Request that the auditor of state perform or contract for 1676
the performance of a financial or special audit of a state 1677
retirement system.1678

       Sec. 171.04.  The Ohio retirement study council shall:1679

       (A) Make an impartial review from time to time of all laws1680
governing the administration and financing of the pension and1681
retirement funds under Chapters 145., 146., 742., 3307., 3309.,1682
and 5505. of the Revised Code and recommend to the general1683
assembly any changes it may find desirable with respect to the1684
allowances and benefits, sound financing of the cost of benefits,1685
the prudent investment of funds, and the improvement of the1686
language, structure, and organization of the laws;1687

       (B) Make an annual report to the governor and to the general 1688
assembly covering its evaluation and recommendations with respect 1689
to the operations of the state retirement systems and their funds;1690

       (C) Study all changes in the retirement laws proposed to the 1691
general assembly and report to the general assembly on their1692
probable costs, actuarial implications, and desirability as a1693
matter of public policy;1694

       (D) Review semiannually the policies, objectives, and 1695
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15, 1696
and 5505.06 of the Revised Code for the operation of the 1697
investment programs of the state retirement systems, including a 1698
review of asset allocation targets and ranges, risk factors, asset1699
class benchmarks, time horizons, total return objectives, relative 1700
volatility, and performance evaluation guidelines. The council 1701
shall, not later than thirty days after completing a review, 1702
submit to the governor and the general assembly a report1703
summarizing its findings.1704

       (E) Have prepared by an independent actuary, at least once 1705
every ten years, an actuarial review of the annual actuarial 1706
valuations and quinquennial actuarial investigations prepared 1707
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of 1708
the Revised Code, including a review of the actuarial assumptions 1709
and methods, the data underlying the valuations and 1710
investigations, and the adequacy of each system's employee and 1711
employer contribution rates to amortize its unfunded actuarial 1712
pension liability, if any, and to support the payment of benefits 1713
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the 1714
Revised Code. The council shall submit to the governor and the 1715
general assembly a report summarizing the review.1716

       (F) Have conducted by an independent auditor at least once 1717
every five years a fiduciary performance audit of each of the 1718
state retirement systems.1719

        All costs associated with an audit conducted pursuant to 1720
division (F) of this section shall be paid by the retirement 1721
system audited.1722

       (G) Review all proposed rules submitted to the council 1723
pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04 1724
of the Revised Code and submit any recommendations to the joint 1725
committee on agency rule review.1726

       Sec. 171.06. The attorney general is the legal adviser to the 1727
Ohio retirement study council.1728

       Sec. 171.50. The boards of the state retirement systems shall 1729
jointly develop a retirement board member education program and 1730
submit the program to the Ohio retirement study council.1731

        The boards shall jointly pay all costs associated with 1732
establishing and conducting the retirement board member education 1733
program.1734

        The retirement board member education program shall consist 1735
of an orientation component for newly elected and appointed 1736
members and a continuing education component for board members who 1737
have served for at least one year. The program shall incorporate 1738
into its curriculum each of the following topics: board member 1739
duties and responsibilities, retirement system member benefits and 1740
health care management, ethics, governance processes and 1741
procedures, actuarial soundness, investments, and any other 1742
subject matter the boards believe is reasonably related to the 1743
duties of a board member.1744

       All program sessions, classes, and other events shall be held 1745
in Ohio.1746

       Sec. 742.03.  (A) As used in this section and in sections1747
742.04 and 742.05 of the Revised Code:1748

       (1) "Police officer" means a member of the fund who is or has 1749
been an employee of a police department and is not a police1750
retirant.1751

       (2) "Firefighter" means a member of the fund who is or has1752
been an employee of a fire department and is not a firefighter1753
retirant.1754

       (3) "Firefighter retirant" means a member of the fund who is1755
receiving an age and service or disability benefit as a result of1756
service in a fire department or a surviving spouse of a deceased1757
member who is receiving a benefit as a result of the deceased1758
member's service in a fire department. "Firefighter retirant" does1759
not include a member of the fund who is participating in the1760
deferred retirement option plan established under section 742.431761
of the Revised Code.1762

       (4) "Police retirant" means a member of the fund who is1763
receiving an age and service or disability benefit as a result of1764
service in a police department or a surviving spouse of a deceased1765
member who is receiving a benefit as a result of the deceased1766
member's service in a police department. "Police retirant" does1767
not include a member of the fund who is participating in the1768
deferred retirement option plan established under section 742.431769
of the Revised Code.1770

       (B) The administration, control, and management of the Ohio1771
police and fire pension fund, created under section 742.02 of the1772
Revised Code, is vested in a board of trustees of the Ohio police1773
and fire pension fund, which shall consist of ninethe following1774
members as follows:1775

       (1) The attorney generaltreasurer of state;1776

       (2) The auditor of state;1777

       (3) The fiscal officer of a municipal corporation who shall1778
be appointed by the governor. This member's term shall be for1779
three years, commencing on the fourth day of June and ending on1780
the third day of June. The fiscal officer member shall hold office 1781
from the date of appointment until the end of the term for which 1782
appointed. Any fiscal officer member appointed to fill a vacancy 1783
occurring prior to the expiration of the term for which the fiscal 1784
officer member's predecessor was appointed shall hold office for 1785
the remainder of such term. Any fiscal officer member shall 1786
continue in office subsequent to the expiration date of the fiscal1787
officer member's term until such member's successor takes office, 1788
or until a period of sixty days has elapsed, whichever occurs 1789
first.1790

       (4) The mayor or chief executive officer of a municipal 1791
corporation who shall be appointed by the governor. This member's 1792
term shall be three years, commencing on the fourth day of June 1793
and ending on the third day of June. The initial mayor or chief 1794
executive officer member shall be appointed and take office on the 1795
June 4 that occurs not less than ninety days after the effective 1796
date of this amendment.1797

       Any mayor or chief executive officer member appointed to fill 1798
a vacancy occurring prior to the expiration of the term of the 1799
member's predecessor shall hold office for the remainder of the 1800
predecessor's term. Notwithstanding the expiration of the member's 1801
term, the mayor or chief executive officer member shall hold 1802
office from the date of appointment until the member's successor 1803
takes office or until a period of sixty days has elapsed, 1804
whichever comes first. 1805

       (5) The chief of a police department or the chief of a fire 1806
department appointed by the governor. This member's term shall be 1807
three years, commencing on the fourth day of June and ending on 1808
the third day of June. The initial member shall be the chief of a 1809
police department and shall be appointed and take office on the 1810
June 4 that occurs not less than ninety days after the effective 1811
date of this amendment. The next such member shall be the chief of 1812
a fire department. Thereafter, the position shall alternate 1813
between the chief of a police department and the chief of a fire 1814
department.1815

       If a vacancy occurs prior to the expiration of a police or 1816
fire department chief's term, the governor shall appoint a 1817
successor member to hold office for the remainder of the 1818
predecessor member's term. If the predecessor member is the chief 1819
of a police department, the governor shall appoint the chief of a 1820
police department as a successor member. If the predecessor member 1821
is the chief of a fire department, the governor shall appoint the 1822
chief of a fire department as a successor member. 1823

       Notwithstanding the expiration of the member's term, each 1824
police or fire department chief member shall hold office from the 1825
date of appointment until the member's successor takes office or 1826
until a period of sixty days has elapsed, whichever comes first. 1827

       (6) Four members known as employee members.1828

       Two employee members shall be police officers elected by1829
police officers. Two employee members shall be firefighters1830
elected by firefighters. Employee members of the board shall be1831
elected for terms of four years as provided by section 742.04 of1832
the Revised Code.1833

       (5)(7) One member known as the firefighter retirant member, 1834
who shall be a resident of this state elected by the firefighter1835
retirants. The firefighter retirant member shall be elected for a1836
term of four years as provided by section 742.04 of the Revised1837
Code.1838

       (6)(8) One member known as the police retirant member, who1839
shall be a resident of this state elected by the police retirants.1840
The police retirant member shall be elected for a term of four1841
years as provided by section 742.04 of the Revised Code.1842

       (C) No employee member of the board who retires while a1843
member of the board shall be eligible to become a retirant member1844
for three years after the date of the member's retirement.1845

       Sec. 742.031. Each newly elected member of the board of 1846
trustees of the Ohio police and fire pension fund and each 1847
individual appointed to fill a vacancy on the board, shall, not 1848
later than ninety days after commencing service as a board member, 1849
complete the orientation program component of the retirement board 1850
member education program established under section 171.50 of the 1851
Revised Code.1852

       Each member of the board who has served a year or longer as a 1853
board member shall, not less than twice each year, attend one or 1854
more programs that are part of the continuing education component 1855
of the retirement board member education program established under 1856
section 171.50 of the Revised Code.1857

       Sec. 742.04.  As used in this section, "county" means the1858
county of residence of an individual who signs a nominating 1859
petition.1860

       Election of the employee members, firefighter retirant 1861
member, and police retirant member of the board of trustees of the 1862
Ohio police and fire pension fund shall be under the supervision 1863
and direction of the board in accordance with rules adopted under 1864
section 111.30 of the Revised Code.1865

       Nominating petitions for candidates for an employee member of 1866
the board elected by police officers shall be signed by at least 1867
one hundred police officers, with at least twenty signers from 1868
each of at least five counties of the state, and certified under 1869
section 111.30 of the Revised Code.1870

       Nominating petitions for candidates for an employee member of 1871
the board elected by firefighters shall be signed by at least one 1872
hundred firefighters, with at least twenty signers from each of at 1873
least five counties of the state, and certified under section 1874
111.30 of the Revised Code.1875

       Nominating petitions for candidates for an employee member of 1876
the board shall be filed in the office of the board not later than 1877
four p.m. on the first Monday in April preceding the date of the 1878
expiration of the term of the employee member of the board whose 1879
successor is to be elected.1880

       The board shall determine the sufficiency of the nominating1881
petitions filed with it and the board's decision shall be final.1882

       The board shall cause ballots to be prepared for the election 1883
of employee members of the board which shall contain the names of 1884
all candidates for whom propercertified nominating petitions have1885
been filed with the board.1886

       A police officer or firefighter is eligible to vote in an 1887
election if the police officer or firefighter is a member of the 1888
fund on the first Monday in March preceding the date of the1889
expiration of the term of the employee member of the board whose1890
successor is to be elected. The board shall determine whether a1891
member of the fund is eligible to vote at an election and its 1892
decision shall be final.1893

       On or before the first Monday in May preceding the date of1894
the expiration of the term of the employee member of the board1895
whose successor is to be elected, the board shall cause ballots to 1896
be sent to each member of the fund who is eligible to vote at such 1897
election to the address of such member as shown on the records of 1898
the board.1899

       Ballots shall be returned to the board not later than the1900
third Tuesday in May following the date that the ballots were1901
mailed to the members of the fund eligible to vote at such1902
election.1903

       The board shall cause the ballots to be counted and shall1904
declareOn certification of the election results under section 1905
111.30 of the Revised Code, the person receiving the highest 1906
number of votes shall be elected as an employee member of the 1907
board for a term of four years beginning on the first Monday in 1908
June following such election.1909

       Nominating petitions for candidates for the police retirant1910
member of the board shall be signed by at least fifty police 1911
retirants, with at least ten signers from at least five counties 1912
of the state, and certified under section 111.30 of the Revised 1913
Code.1914

       Nominating petitions for candidates for the firefighter1915
retirant member of the board shall be signed by at least fifty 1916
firefighter retirants, with at least ten signers from at least 1917
five counties of the state, and certified under section 111.30 of 1918
the Revised Code.1919

       Nominating petitions for candidates for the retirant members 1920
of the board shall be filed in the office of the board not later1921
than four p.m. on the first Monday in April preceding the date of1922
the expiration of the term of the retirant member of the board1923
whose successor is to be elected.1924

       The board shall determine the sufficiency of the nominating1925
petitions filed with it, and the board's decision shall be final.1926

       The board shall cause ballots to be prepared for the election 1927
of these board members which shall contain the names of all 1928
candidates for whom propercertified nominating petitions have1929
been filed with the board.1930

       A retirant is eligible to vote in an election if the retirant 1931
is a police retirant or firefighter retirant on the first Monday 1932
in April preceding the date of the expiration of the term of the 1933
retirant member of the board whose successor is to be elected. The 1934
board shall determine whether a police retirant or firefighter 1935
retirant is eligible to vote at an election and its decision shall 1936
be final.1937

       On or before the first Monday in May preceding the date of1938
the expiration of the term of a retirant member of the board whose 1939
successor is to be elected, the board shall cause ballots to be 1940
sent to each person who is eligible to vote in the election to the 1941
address of the person as shown on the records of the board.1942

       Ballots shall be returned to the board not later than the1943
third Tuesday in May following the date that the ballots were1944
mailed to the persons eligible to vote in the election.1945

       The board shall cause the ballots to be counted and shall1946
declareOn certification of the election results under section 1947
111.30 of the Revised Code, the person receiving the highest 1948
number of votes shall be elected as the police retirant member or 1949
the firefighter retirant member of the board for a term of four 1950
years beginning on the first Monday in June following the 1951
election.1952

       Sec. 742.042. (A) As used in this section:1953

        (1) "Campaign committee" means a candidate or a combination 1954
of two or more persons authorized by a candidate to receive 1955
contributions and in-kind contributions and make expenditures on 1956
behalf of the candidate.1957

        (2) "Candidate" means an individual who has been nominated 1958
pursuant to section 742.04 of the Revised Code for election to the 1959
board of trustees of the Ohio police and fire pension fund.1960

       (3) "Contribution" means a loan, gift, deposit, forgiveness 1961
of indebtedness, donation, advance, payment, transfer of funds or 1962
transfer of anything of value including a transfer of funds from 1963
an inter vivos or testamentary trust or decedent's estate, and the 1964
payment by any person other than the person to whom the services 1965
are rendered for the personal services of another person, which 1966
contribution is made, received, or used for the purpose of 1967
influencing the results of an election to the board of trustees of 1968
the Ohio police and fire pension fund under section 742.04 of the 1969
Revised Code. "Contribution" does not include:1970

       (a) Services provided without compensation by individuals 1971
volunteering a portion or all of their time on behalf of a person;1972

        (b) Ordinary home hospitality;1973

        (c) The personal expenses of a volunteer paid for by that 1974
volunteer campaign worker.1975

       (4) "Election day" means the following, as appropriate to the 1976
situation:1977

        (a) The third Tuesday in May of a year for which section 1978
742.04 of the Revised Code specifies that an election for a member 1979
of the board of trustees of the Ohio police and fire pension fund 1980
be held;1981

        (b) If, pursuant to section 742.041 of the Revised Code, no 1982
election is held, the third Tuesday in May of a year that the 1983
election would have been held if not for section 742.041 of the 1984
Revised Code.1985

       (5) "Expenditure" means the disbursement or use of a 1986
contribution for the purpose of influencing the results of an 1987
election to the board of trustees of the Ohio police and fire 1988
pension fund under section 742.04 of the Revised Code.1989

        (6) "In-kind contribution" means anything of value other than 1990
money that is used to influence the results of an election to the 1991
board of trustees of the Ohio police and fire pension fund under 1992
section 742.04 of the Revised Code or is transferred to or used in 1993
support of or in opposition to a candidate and that is made with 1994
the consent of, in coordination, cooperation, or consultation 1995
with, or at the request or suggestion of the benefited candidate. 1996
The financing of the dissemination, distribution, or 1997
republication, in whole or part, of any broadcast or of any 1998
written, graphic, or other form of campaign materials prepared by 1999
the candidate, the candidate's campaign committee, or their 2000
authorized agents is an in-kind contribution to the candidate and 2001
an expenditure by the candidate.2002

        (7) "Personal expenses" includes ordinary expenses for 2003
accommodations, clothing, food, personal motor vehicle or 2004
airplane, and home telephone.2005

        (B) Each candidate who, or whose campaign committee, receives 2006
a contribution or in-kind contribution or makes an expenditure in 2007
connection with the candidate's efforts to be elected to the board 2008
of trustees of the Ohio police and fire pension fund shall file 2009
with the secretary of state two complete, accurate, and itemized 2010
statements setting forth in detail the contributions, in-kind 2011
contributions, and expenditures. The statements shall be filed 2012
regardless of whether, pursuant to section 742.041 of the Revised 2013
Code, no election is held. The statements shall be made on a form 2014
prescribed under section 111.30 of the Revised Code.2015

        The first statement shall be filed not later than four p.m. 2016
on the day that is twelve days before election day. The second 2017
statement shall be filed not sooner than the day that is eight 2018
days after election day and not later than thirty-eight days after 2019
election day. The first statement shall reflect contributions and 2020
in-kind contributions received and expenditures made to the close 2021
of business on the twentieth day before election day. The second 2022
statement shall reflect contributions and in-kind contributions 2023
received and expenditures made during the period beginning on the 2024
nineteenth day before election day and ending on the close of 2025
business on the seventh day after election day.2026

       (C) Each individual, partnership, or other entity who makes 2027
an expenditure in connection with the candidate's efforts to be 2028
elected to the board of trustees of the police and fire pension 2029
fund shall file with the secretary of state two complete, 2030
accurate, and itemized statements setting forth in detail the 2031
expenditures. The statements shall be filed regardless of whether, 2032
pursuant to section 742.041 of the Revised Code, no election is 2033
held. The statements shall be made on a form prescribed under 2034
section 111.30 of the Revised Code. 2035

       The first statement shall be filed not later than four p.m. 2036
on the day that is twelve days before election day. The second 2037
statement shall be filed not sooner than the day that is eight 2038
days after election day and not later than thirty-eight days after 2039
election day. The first statement shall reflect expenditures made 2040
to the close of business on the twentieth day before election day. 2041
The second statement shall reflect expenditures made during the 2042
period beginning on the nineteenth day before election day and 2043
ending on the close of business on the seventh day after election 2044
day.2045

       Sec.  742.043.  (A) No person shall knowingly fail to file a 2046
complete and accurate statement in accordance with section 742.042 2047
of the Revised Code.2048

       (B) No person, during the course of a person seeking 2049
nomination for, and during any campaign for, election to the board 2050
of trustees of the police and fire pension fund, shall knowingly 2051
and with intent to affect the nomination or the outcome of the 2052
campaign do any of the following by means of campaign materials, 2053
an advertisement on radio or television or in a newspaper or 2054
periodical, a public speech, press release, or otherwise: 2055

       (1) With regard to a candidate, identify the candidate in a 2056
manner that implies that the candidate is a member of the board or 2057
use the term "re-elect" when the candidate is not currently a 2058
member of the board; 2059

       (2) Make a false statement concerning the formal schooling or 2060
training completed or attempted by a candidate; a degree, diploma, 2061
certificate, scholarship, grant, award, prize, or honor received, 2062
earned, or held by a candidate; or the period of time during which 2063
a candidate attended any school, college, community technical 2064
school, or institution; 2065

       (3) Make a false statement concerning the professional, 2066
occupational, or vocational licenses held by a candidate, or 2067
concerning any position the candidate held for which the candidate 2068
received a salary or wages; 2069

       (4) Make a false statement that a candidate or public 2070
official has been indicted or convicted of a theft offense, 2071
extortion, or other crime involving financial corruption or moral 2072
turpitude; 2073

       (5) Make a statement that a candidate has been indicted for 2074
any crime or has been the subject of a finding by the Ohio 2075
elections commission without disclosing the outcome of any legal 2076
proceedings resulting from the indictment or finding; 2077

       (6) Make a false statement that a candidate or official has a 2078
record of treatment or confinement for mental disorder; 2079

       (7) Make a false statement that a candidate or official has 2080
been subjected to military discipline for criminal misconduct or 2081
dishonorably discharged from the armed services; 2082

       (8) Falsely identify the source of a statement, issue 2083
statements under the name of another person without authorization, 2084
or falsely state the endorsement of or opposition to a candidate 2085
by a person or publication; 2086

       (9) Make a false statement concerning the voting record of a 2087
candidate or public official; 2088

       (10) Post, publish, circulate, distribute, or otherwise 2089
disseminate a false statement concerning a candidate, either 2090
knowing the same to be false or with reckless disregard of whether 2091
it was false or not, if the statement is designed to promote the 2092
election, nomination, or defeat of the candidate. 2093

       Sec. 742.044.  The secretary of state, or any person acting 2094
on personal knowledge and subject to the penalties of perjury, may 2095
file a complaint with the Ohio elections commission alleging a 2096
violation of section 742.043 of the Revised Code. The complaint 2097
shall be made on a form prescribed and provided by the commission.2098

        On receipt of a complaint under this section, the commission 2099
shall hold a hearing open to the public to determine whether the 2100
violation alleged in the complaint has occurred. The commission 2101
may administer oaths and issue subpoenas to any person in the 2102
state compelling the attendance of witnesses and the production of 2103
relevant papers, books, accounts, and reports. On the refusal of 2104
any person to obey a subpoena or to be sworn or to answer as a 2105
witness, the commission may apply to the court of common pleas of 2106
Franklin county under section 2705.03 of the Revised Code. The 2107
court shall hold contempt proceedings in accordance with Chapter 2108
2705. of the Revised Code.2109

       The commission shall provide the person accused of the 2110
violation at least seven days prior notice of the time, date, and 2111
place of the hearing. The accused may be represented by an 2112
attorney and shall have an opportunity to present evidence, call 2113
witnesses, and cross-examine witnesses.2114

        At the hearing, the commission shall determine whether the 2115
violation alleged in the complaint has occurred. If the commission 2116
determines that a violation of division (A) of section 742.043 of 2117
the Revised Code has occurred, the commission shall either impose 2118
a fine under section 742.99 of the Revised Code or enter a finding 2119
that good cause has been shown not to impose the fine. If the 2120
commission determines that a violation of division (B) of section 2121
742.043 of the Revised Code has occurred, the commission shall 2122
impose the fine described in section 742.99 of the Revised Code, 2123
refer the matter to the appropriate prosecutor, or enter a finding 2124
that good cause has been shown not to impose a fine or refer the 2125
matter to a prosecutor.2126

       Sec. 742.046. An employee member, firefighter retirant 2127
member, or police retirant member of the board of trustees of the 2128
police and fire pension fund who is charged with committing a 2129
felony, a theft offense as defined in section 2913.01 of the 2130
Revised Code, or a violation of section 102.02, 102.03, 102.04, 2131
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2132
2921.44 of the Revised Code shall be suspended from participation 2133
on the board for the period during which the charges are pending. 2134
If the charges are dismissed, the member is found not guilty, or 2135
the charges are otherwise resolved in a manner not resulting in 2136
the member being convicted of or pleading guilty to an offense of 2137
that nature, the suspension shall end, and the member may 2138
participate on the board. If the member pleads guilty to or is 2139
convicted of the offense, the position of the member on the board 2140
shall be deemed vacant. A person who has pleaded guilty to or been 2141
convicted of an offense of that nature is ineligible for election 2142
to the office of employee member, firefighter retirant member, or 2143
police retirant member of the board of trustees of the police and 2144
fire pension fund.2145

        The Ohio retirement study council may hold a hearing to 2146
determine whether to remove an employee member, firefighter 2147
retirant member, or police retirant member of the board of 2148
trustees of the police and fire pension fund who has been 2149
suspended pursuant to this section. If it decides to hold a 2150
hearing, the council shall provide the suspended board member at 2151
least seven days prior notice of the time, date, and place of the 2152
hearing. The suspended board member may be represented by an 2153
attorney. At the hearing the suspended board member, or the 2154
suspended board member's attorney, shall have an opportunity to 2155
present evidence, call witnesses, and cross-examine witnesses. The 2156
hearing shall be open to the public. At the conclusion of the 2157
hearing, if the voting members of the council unanimously vote to 2158
remove the suspended board member, the suspended board member 2159
shall be removed from the board, and the position of the member 2160
shall be deemed vacant.2161

       Sec. 742.05.  Any vacancy occurring in the term of a member2162
of the board of trustees of the Ohio police and fire pension fund 2163
who is the fiscal officer of a municipal corporation shall be 2164
filled by appointment by the governor for the unexpired term of 2165
such member.2166

       AnyIf a vacancy occurringoccurs in the term of an employee 2167
or retirant member of the board shall be filled by, all the 2168
remaining employee members and the retirant members of the board 2169
for the unexpired term of suchshall elect a successor employee or 2170
retirant member. On certification of the election results under 2171
section 111.30 of the Revised Code, the successor member shall 2172
hold office until the next board election that occurs not less 2173
than ninety days after the successor member's election.2174

       Any vacancy occurring in the term of a retirant member of the 2175
board shall be filled by the employee members and the remaining2176
retirant member of the board for the unexpired term.2177

       Elections under this section to fill a vacancy on the board 2178
shall be conducted under the supervision of the secretary of state 2179
pursuant to section 111.30 of the Revised Code.2180

       If a member of the board who is the fiscal officer of a2181
municipal corporation ceases to be a fiscal officer of a municipal 2182
corporation, a vacancy shall exist.2183

       If a member of the board who is the mayor or chief executive 2184
officer of a municipal corporation ceases to be the mayor or chief 2185
executive officer of a municipal corporation, a vacancy shall 2186
exist. 2187

       If a member of the board who is the chief of a police 2188
department or a fire department ceases to be the chief of a police 2189
department or a fire department, a vacancy shall exist.2190

       If an employee member of the board ceases to be a member of 2191
the fund, a vacancy shall exist.2192

       If as a result of changed circumstances a retirant member no 2193
longer qualifies for membership on the board as a retirant member, 2194
a vacancy shall exist.2195

       Any employee or retirantelected or appointed member of the 2196
board or member of the board who is the fiscal officer of a 2197
municipal corporation who fails to attend three consecutive 2198
meetings of the board, without valid excuse, shall be considered 2199
as having resigned from the board and the board shall declare the 2200
member's office vacated and as of the date of the adoption of a 2201
proper resolution a vacancy shall exist.2202

       Sec. 742.10.  The board of trustees of the Ohio police and2203
fire pension fund may sue and be sued, plead and be impleaded, 2204
contract and be contracted with, employ and fix the compensation 2205
of employees, and adopt rules for the proper administration and 2206
management of the fund. 2207

       Effective ninety days after the effective date of this 2208
amendment, the board of trustees may not employ a state retirement 2209
system investment officer, as defined in section 1707.01 of the 2210
Revised Code, who does not hold a valid state retirement system 2211
investment officer license issued by the division of securities in 2212
the department of commerce.2213

       If the Ohio retirement study council establishes a uniform 2214
format for any report the board is required to submit to the 2215
council, the board shall submit the report in that format.2216

       The attorney general shall prescribe procedures for the 2217
adoption of rules authorized under this chapter, consistent with 2218
the provisions of section 111.15 of the Revised Code under which 2219
all rules shall be filed in order to be effective. Such procedures 2220
shall establish methods by which notice of proposed rules is given2221
to interested parties and rules adopted by the board published and 2222
otherwise made available. When it files a rule with the joint 2223
committee on agency rule review pursuant to section 111.15 of the2224
Revised Code, the board shall submit to the Ohio retirement study2225
council a copy of the full text of the rule, and if applicable, a 2226
copy of the rule summary and fiscal analysis required by division2227
(B) of section 127.18 of the Revised Code.2228

       All rules adopted pursuant to this chapter, prior to August 2229
20, 1976, shall be published and made available to interested 2230
parties by January 1, 1977.2231

       Sec. 742.102.  The board of trustees of the police and fire 2232
pension fund shall do all of the following:2233

        (A) In consultation with the Ohio ethics commission, review 2234
any existing policy regarding the travel and payment of travel 2235
expenses of members of the board of trustees and employees of the 2236
fund and adopt rules in accordance with section 742.10 of the 2237
Revised Code establishing a new or revised policy regarding travel 2238
and payment of travel expenses;2239

        (B) If the board intends to award a bonus to any employee of 2240
the board, adopt rules in accordance with section 742.10 of the 2241
Revised Code establishing a policy regarding employee bonuses;2242

        (C) Provide copies of the rules adopted under divisions (A) 2243
and (B) of this section to each member of the Ohio retirement 2244
study council;2245

       (D) Submit to the Ohio retirement study council a proposed 2246
operating budget, including a travel budget, for the next 2247
immediate fiscal year and adopt that budget not earlier than sixty 2248
days after it is submitted to the council.2249

       Sec. 742.103. The board of trustees of the police and fire 2250
pension fund shall, in consultation with the Ohio ethics 2251
commission, develop an ethics policy. The board shall submit this 2252
policy to the Ohio retirement study council for approval.2253

        The council shall review the policy in consultation with the 2254
Ohio ethics commission and, if the council determines that the 2255
policy is adequate, approve the policy. If the council determines 2256
that the policy is inadequate, it shall specify the revisions to 2257
be made and the board shall submit a revised policy. If the 2258
council approves the revised policy, the board shall adopt it. If 2259
not, the board shall make any further revisions required by the 2260
council and adopt the policy.2261

       The board periodically shall provide ethics training to 2262
members and employees of the board. The training shall include 2263
training regarding the requirements and prohibitions of Chapter 2264
102. of the Revised Code and sections 2921.42 and 2921.43 of the 2265
Revised Code and any other training the board considers 2266
appropriate.2267

        The board shall establish a procedure to ensure that each 2268
employee of the board is informed of the procedure for filing a 2269
complaint alleging violation of Chapter 102. of the Revised Code 2270
or section 2921.42 or 2921.43 of the Revised Code with the Ohio 2271
ethics commission or the appropriate prosecuting attorney. 2272

       Sec. 742.104.  (A) The board of trustees of the police and 2273
fire pension fund shall designate a person who is a licensed state 2274
retirement system investment officer to be the chief investment 2275
officer for the police and fire pension fund. The board shall 2276
notify the division of securities of the department of commerce in 2277
writing of its designation and of any change in its designation 2278
within ten calendar days of the designation or change.2279

       (B) The chief investment officer shall reasonably supervise 2280
the licensed state retirement system investment officers and other 2281
persons employed by the police and fire pension fund with a view 2282
toward preventing violations of Chapter 1707. of the Revised Code, 2283
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and 2284
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 2285
and following, and the "Securities Exchange Act of 1934," 48 Stat. 2286
881, 15 U.S.C. 78a, and following, and the rules and regulations 2287
promulgated under those statutes. This duty of reasonable 2288
supervision shall include the adoption, implementation, and 2289
enforcement of written policies and procedures reasonably designed 2290
to prevent persons employed by the police and fire pension fund 2291
from misusing material, nonpublic information in violation of 2292
those laws, rules, and regulations.2293

       For purposes of this division, no chief investment officer 2294
shall be considered to have failed to satisfy the officer's duty 2295
of reasonable supervision if the officer has done all of the 2296
following:2297

       (1) Adopted and implemented written procedures, and a system 2298
for applying the procedures, that would reasonably be expected to 2299
prevent and detect, insofar as practicable, any violation by its 2300
licensed investment officers and other persons employed by the 2301
police and fire pension fund;2302

       (2) Reasonably discharged the duties and obligations 2303
incumbent on the chief investment officer by reason of the 2304
established procedures and the system for applying the procedures 2305
when the officer had no reasonable cause to believe that there was 2306
a failure to comply with the procedures and systems;2307

       (3) Reviewed, at least annually, the adequacy of the policies 2308
and procedures established pursuant to this section and the 2309
effectiveness of their implementation.2310

       (C) The chief investment officer shall ensure that securities 2311
transactions are executed in such a manner that the fund's total 2312
costs or proceeds in each transaction are the most favorable under 2313
the circumstances. 2314

       For purposes of this division, no chief investment officer 2315
shall be considered to have failed to satisfy the officer's duty 2316
of best execution if the officer has done both of the following:2317

       (1) Adopted and implemented a written policy that outlines 2318
the criteria used to select broker-dealers that execute securities 2319
transactions on behalf of the police and fire pension fund, which 2320
criteria shall include all of the following:2321

       (a) Commissions charged by the broker-dealer, both in the 2322
aggregate and on a per share basis;2323

       (b) The execution speed and trade settlement capabilities of 2324
the broker-dealer;2325

       (c) The responsiveness, reliability, and integrity of the 2326
broker-dealer;2327

       (d) The nature and value of research provided by the 2328
broker-dealer; 2329

       (e) Any special capabilities of the broker-dealer.2330

       (2) Reviewed, at least annually, the performance of 2331
broker-dealers that execute securities transactions on behalf of 2332
the police and fire pension fund.2333

       Sec. 742.114. The attorney general may maintain a civil 2334
action under section 109.98 of the Revised Code against a member 2335
of the board of trustees of the Ohio police and fire pension fund 2336
for harm resulting from a breach of the member's fiduciary duty.2337

       Sec. 742.38.  (A)(1) The board of trustees of the Ohio police 2338
and fire pension fund shall adopt rules establishing minimum 2339
medical testing and diagnostic standards or procedures to be 2340
incorporated into physical examinations administered by physicians2341
to prospective members of the fund. The standards or procedures 2342
shall include diagnosis and evaluation of the existence of any 2343
heart disease, cardiovascular disease, or respiratory disease. The2344
rules shall specify the form of the physician's report and the2345
information to be included in it.2346

       The board shall notify all employers of the establishment of2347
the minimum standards or procedures and shall include with the2348
notice a copy of the standards or procedures. The board shall2349
notify all employers of any changes made to the standards or2350
procedures. Once the standards or procedures take effect,2351
employers shall cause each prospective member of the fund to2352
submit to a physical examination that incorporates the standards2353
or procedures.2354

       (2) Division (A)(2) of this section applies to an employee2355
who becomes a member of the fund on or after the date the minimum2356
standards or procedures described in division (A)(1) of this2357
section take effect. For each employee described in division2358
(A)(2) of this section, the employer shall forward to the board a2359
copy of the physician's report of a physical examination that2360
incorporates the standards or procedures described in division2361
(A)(1) of this section. If an employer fails to forward the report2362
in the form required by the board on or before the date that is 2363
sixty days after the employee becomes a member of the fund, the 2364
board shall assess against the employer a penalty determined under2365
section 742.353 of the Revised Code.2366

       (B) Application for a disability benefit may be made by a2367
member of the fund or, if the member is incapacitated as defined2368
in rules adopted by the board, by a person acting on the member's2369
behalf. Not later than fourteen days after receiving an2370
application for a disability benefit from a member or a person2371
acting on behalf of a member, the board shall notify the member's2372
employer and the chief of police of the police department 2373
employing the member or the chief of the fire department employing 2374
the member, as applicable, that an application has been filed. The2375
notice shall state the name of the member who filed the 2376
application or on whose behalf the application was filed and the 2377
member's position or rank. The notice and the fact that the 2378
application has been filed shall be confidential. Not later than 2379
twenty-eight days after receiving the notice or filing an 2380
application on behalf of a member, the employer shall forward to 2381
the board a statement certifying the member's job description and 2382
any other information required by the board to process the 2383
application.2384

       If the member applying for a disability benefit becomes a2385
member of the fund prior to the date the minimum standards or2386
procedures described in division (A)(1) of this section take2387
effect, the board may request from the member's employer a copy of2388
the physician's report of the member's physical examination taken2389
on entry into the police or fire department or, if the employer2390
does not have a copy of the report, a written statement certifying2391
that the employer does not have a copy of the report. If an2392
employer fails to forward the report or statement in the form2393
required by the board on or before the date that is twenty-eight2394
days after the date of the request, the board shall assess against2395
the employer a penalty determined under section 742.353 of the2396
Revised Code. The board shall maintain the information submitted2397
under this division and division (A)(2) of this section in the2398
member's file.2399

       (C) For purposes of determining under division (D) of this2400
section whether a member of the fund is disabled, the board shall2401
adopt rules establishing objective criteria under which the board2402
shall make the determination. The rules shall include standards2403
that provide for all of the following:2404

       (1) Evaluating a member's illness or injury on which an2405
application for disability benefits is based;2406

       (2) Defining the occupational duties of a police officer or2407
firefighter;2408

       (3) Providing for the board to assign competent and2409
disinterested physicians and vocational evaluators to conduct2410
examinations of a member;2411

       (4) Requiring a written report for each disability2412
application that includes a summary of findings, medical opinions,2413
including an opinion on whether the illness or injury upon which2414
the member's application for disability benefits is based was2415
caused or induced by the actual performance of the member's2416
official duties, and any recommendations or comments based on the2417
medical opinions;2418

       (5) Providing for the board to consider the member's2419
potential for retraining or reemployment.2420

       (D) This division does not apply to members of the fund who2421
have elected to receive benefits and pensions in accordance with2422
division (A) or (B) of section 742.37 of the Revised Code or from2423
a police relief and pension fund or a firemen's relief and pension2424
fund in accordance with the rules of that fund in force on April2425
1, 1947.2426

       (1) As used in division (D)(1) of this section:2427

       (a) "Totally disabled" means a member of the fund is unable2428
to perform the duties of any gainful occupation for which the2429
member is reasonably fitted by training, experience, and2430
accomplishments. Absolute helplessness is not a prerequisite of2431
being totally disabled.2432

       (b) "Permanently disabled" means a condition of disability2433
from which there is no present indication of recovery.2434

       A member of the fund who is permanently and totally disabled2435
as the result of the performance of the member's official duties2436
as a member of a police or fire department shall be paid annual2437
disability benefits in accordance with division (A) of section2438
742.39 of the Revised Code. In determining whether a member of the 2439
fund is permanently and totally disabled, the board shall consider 2440
standards adopted under division (C) of this section applicable to 2441
the determination.2442

       (2) A member of the fund who is partially disabled as the2443
result of the performance of the member's official duties as a2444
member of a police or fire department shall, if the disability2445
prevents the member from performing those duties and impairs the2446
member's earning capacity, receive annual disability benefits in2447
accordance with division (B) of section 742.39 of the Revised2448
Code. In determining whether a member of the fund is partially2449
disabled, the board shall consider standards adopted under2450
division (C) of this section applicable to the determination.2451

       (3) A member of the fund who is disabled as a result of heart 2452
disease or any cardiovascular or respiratory disease of a chronic 2453
nature, which disease or any evidence of which disease was not 2454
revealed by the physical examination passed by the member on entry 2455
into the department, is presumed to have incurred the disease 2456
while performing the member's official duties, unless the contrary 2457
is shown by competent evidence.2458

       (4) A member of the fund who has completed five or more years 2459
of active service in a police or fire department and has incurred 2460
a disability not caused or induced by the actual performance of 2461
the member's official duties as a member of the department, or by 2462
the member's own negligence, shall if the disability prevents the 2463
member from performing those duties and impairs the member's2464
earning capacity, receive annual disability benefits in accordance 2465
with division (C) of section 742.39 of the Revised Code. In 2466
determining whether a member of the fund is disabled, the board 2467
shall consider standards adopted under division (C) of this 2468
section applicable to the determination.2469

       (5) The board shall notify a member of its final action2470
awarding a disability benefit to the member within thirty days of2471
the final action. The notice shall be sent by certified mail,2472
return receipt requested. Not later than ninety days after receipt 2473
of notice from the board, the member shall elect, on a form 2474
provided by the board, either to accept or waive the disability 2475
benefit award. If the member elects to waive the disability 2476
benefit award or fails to make an election within the time period, 2477
the award is rescinded. A member who later seeks a disability 2478
benefit award shall be required to make a new application, which 2479
shall be dealt with in accordance with the procedures used for 2480
original disability benefit applications.2481

       A person is not eligible to apply for or receive disability2482
benefits under this division, section 742.39 of the Revised Code,2483
or division (C)(2), (3), (4), or (5) of former section 742.37 of2484
the Revised Code unless the person is a member of the fund on the2485
date on which the application for disability benefits is submitted2486
to the fund.2487

       With the exception of persons who may make application for2488
increased benefits as provided in division (D)(2) or (4) of this2489
section or division (C)(3) or (5) of former section 742.37 of the2490
Revised Code on or after July 24, 1986, or persons who may make2491
application for benefits as provided in section 742.26 of the2492
Revised Code, no person receiving a pension or benefit under this2493
section or division (C) of former section 742.37 of the Revised2494
Code may apply for any new, changed, or different benefit.2495

       Sec. 742.41.  (A) As used in this section:2496

       (1) "Other system retirant" has the same meaning as in2497
section 742.26 of the Revised Code.2498

       (2) "Personal history record" includes a member's, former2499
member's, or other system retirant's name, address, telephone2500
number, social security number, record of contributions,2501
correspondence with the Ohio police and fire pension fund, status2502
of any application for benefits, and any other information deemed2503
confidential by the trustees of the fund.2504

       (B) The treasurer of state shall furnish annually to the2505
board of trustees of the fund a sworn statement of the amount of2506
the funds in the treasurer of state's custody belonging to the2507
Ohio police and fire pension fund. The records of the fund shall2508
be open for public inspection except for the following, which2509
shall be excluded, except with the written authorization of the2510
individual concerned:2511

       (1) The individual's personal history record;2512

       (2) Any information identifying, by name and address, the2513
amount of a monthly allowance or benefit paid to the individual.2514

       (C) All medical reports and recommendations required are2515
privileged, except that copies of such medical reports or2516
recommendations shall be made available to the personal physician,2517
attorney, or authorized agent of the individual concerned upon2518
written release received from the individual or the individual's2519
agent or, when necessary for the proper administration of the2520
fund, to the board-assigned physician.2521

       (D) Any person who is a member of the fund or an other system 2522
retirant shall be furnished with a statement of the amount to the 2523
credit of the person's individual account upon the person's2524
written request. The fund need not answer more than one such2525
request of a person in any one year.2526

       (E) Notwithstanding the exceptions to public inspection in2527
division (B) of this section, the fund may furnish the following2528
information:2529

       (1) If a member, former member, or other system retirant is2530
subject to an order issued under section 2907.15 of the Revised2531
Code or is convicted of or pleads guilty to a violation of section2532
2921.41 of the Revised Code, on written request of a prosecutor as2533
defined in section 2935.01 of the Revised Code, the fund shall2534
furnish to the prosecutor the information requested from the2535
individual's personal history record.2536

       (2) Pursuant to a court order issued pursuant to Chapter2537
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall2538
furnish to a court or child support enforcement agency the2539
information required under that section.2540

       (3) At the request of any organization or association of2541
members of the fund, the fund shall provide a list of the names2542
and addresses of members of the fund and other system retirants.2543
The fund shall comply with the request of such organization or2544
association at least once a year and may impose a reasonable2545
charge for the list.2546

       (4) Within fourteen days after receiving from the director of 2547
job and family services a list of the names and social security2548
numbers of recipients of public assistance pursuant to section2549
5101.181 of the Revised Code, the fund shall inform the auditor of2550
state of the name, current or most recent employer address, and2551
social security number of each member or other system retirant2552
whose name and social security number are the same as that of a2553
person whose name or social security number was submitted by the2554
director. The fund and its employees shall, except for purposes of 2555
furnishing the auditor of state with information required by this 2556
section, preserve the confidentiality of recipients of public2557
assistance in compliance with division (A) of section 5101.181 of2558
the Revised Code.2559

       (5) The fund shall comply with orders issued under section2560
3105.87 of the Revised Code.2561

       On the written request of an alternate payee, as defined in2562
section 3105.80 of the Revised Code, the fund shall furnish to the2563
alternate payee information on the amount and status of any2564
amounts payable to the alternate payee under an order issued under2565
section 3105.171 or 3105.65 of the Revised Code.2566

       (6) At the request of any person, the fund shall make 2567
available to the person copies of all documents, including 2568
resumes, in the fund's possession regarding filling a vacancy of a 2569
police officer employee member, firefighter employee member, 2570
police retirant member, or firefighter retirant member of the 2571
board of trustees. The person who made the request shall pay the 2572
cost of compiling, copying, and mailing the documents. The 2573
information described in this division is a public record.2574

       (7) The fund shall furnish the personal history records kept 2575
by the fund to the secretary of state for the purposes of 2576
certifying an election pursuant to section 111.30 of the Revised 2577
Code.2578

       (F) A statement that contains information obtained from the2579
fund's records that is signed by the secretary of the board of2580
trustees of the Ohio police and fire pension fund and to which the2581
board's official seal is affixed, or copies of the fund's records2582
to which the signature and seal are attached, shall be received as2583
true copies of the fund's records in any court or before any2584
officer of this state.2585

       Sec. 742.99. (A) Whoever violates section 742.043 of the 2586
Revised Code shall be fined not more than one hundred dollars for 2587
each day of the violation.2588

       (B) Whoever violates division (B) of section 742.043 of the 2589
Revised Code shall be imprisoned for not more than six months or 2590
fined not more than five thousand dollars, or both. 2591

        (C) Fines imposed by the Ohio elections commission under this 2592
section shall be paid into the Ohio elections commission fund 2593
created under section 3513.10 of the Revised Code.2594

       Sec. 1707.01.  As used in this chapter:2595

       (A) Whenever the context requires it, "division" or "division 2596
of securities" may be read as "director of commerce" or as 2597
"commissioner of securities."2598

       (B) "Security" means any certificate or instrument, or any 2599
oral, written, or electronic agreement, understanding, or 2600
opportunity, that represents title to or interest in, or is 2601
secured by any lien or charge upon, the capital, assets, profits, 2602
property, or credit of any person or of any public or governmental 2603
body, subdivision, or agency. It includes shares of stock, 2604
certificates for shares of stock, an uncertificated security, 2605
membership interests in limited liability companies, voting-trust 2606
certificates, warrants and options to purchase securities, 2607
subscription rights, interim receipts, interim certificates, 2608
promissory notes, all forms of commercial paper, evidences of 2609
indebtedness, bonds, debentures, land trust certificates, fee 2610
certificates, leasehold certificates, syndicate certificates, 2611
endowment certificates, interests in or under profit-sharing or 2612
participation agreements, interests in or under oil, gas, or 2613
mining leases, preorganization or reorganization subscriptions,2614
preorganization certificates, reorganization certificates, 2615
interests in any trust or pretended trust, any investment 2616
contract, any life settlement interest, any instrument evidencing 2617
a promise or an agreement to pay money, warehouse receipts for 2618
intoxicating liquor, and the currency of any government other than 2619
those of the United States and Canada, but sections 1707.01 to 2620
1707.45 of the Revised Code do not apply to the sale of real 2621
estate.2622

       (C)(1) "Sale" has the full meaning of "sale" as applied by or 2623
accepted in courts of law or equity, and includes every2624
disposition, or attempt to dispose, of a security or of an2625
interest in a security. "Sale" also includes a contract to sell,2626
an exchange, an attempt to sell, an option of sale, a solicitation2627
of a sale, a solicitation of an offer to buy, a subscription, or2628
an offer to sell, directly or indirectly, by agent, circular,2629
pamphlet, advertisement, or otherwise.2630

       (2) "Sell" means any act by which a sale is made.2631

       (3) The use of advertisements, circulars, or pamphlets in2632
connection with the sale of securities in this state exclusively2633
to the purchasers specified in division (D) of section 1707.03 of2634
the Revised Code is not a sale when the advertisements, circulars,2635
and pamphlets describing and offering those securities bear a2636
readily legible legend in substance as follows: "This offer is2637
made on behalf of dealers licensed under sections 1707.01 to2638
1707.45 of the Revised Code, and is confined in this state2639
exclusively to institutional investors and licensed dealers."2640

       (4) The offering of securities by any person in conjunction2641
with a licensed dealer by use of advertisement, circular, or2642
pamphlet is not a sale if that person does not otherwise attempt2643
to sell securities in this state.2644

       (5) Any security given with, or as a bonus on account of, any 2645
purchase of securities is conclusively presumed to constitute a 2646
part of the subject of that purchase and has been "sold."2647

       (6) "Sale" by an owner, pledgee, or mortgagee, or by a person 2648
acting in a representative capacity, includes sale on behalf of 2649
such party by an agent, including a licensed dealer or2650
salesperson.2651

       (D) "Person," except as otherwise provided in this chapter,2652
means a natural person, firm, partnership, limited partnership,2653
partnership association, syndicate, joint-stock company,2654
unincorporated association, trust or trustee except where the2655
trust was created or the trustee designated by law or judicial2656
authority or by a will, and a corporation or limited liability2657
company organized under the laws of any state, any foreign2658
government, or any political subdivision of a state or foreign2659
government.2660

       (E)(1) "Dealer," except as otherwise provided in this2661
chapter, means every person, other than a salesperson, who engages2662
or professes to engage, in this state, for either all or part of2663
the person's time, directly or indirectly, either in the business2664
of the sale of securities for the person's own account, or in the2665
business of the purchase or sale of securities for the account of2666
others in the reasonable expectation of receiving a commission,2667
fee, or other remuneration as a result of engaging in the purchase2668
and sale of securities. "Dealer" does not mean any of the2669
following:2670

       (a) Any issuer, including any officer, director, employee, or 2671
trustee of, or member or manager of, or partner in, or any general 2672
partner of, any issuer, that sells, offers for sale, or does any 2673
act in furtherance of the sale of a security that represents an 2674
economic interest in that issuer, provided no commission, fee, or 2675
other similar remuneration is paid to or received by the issuer 2676
for the sale;2677

       (b) Any licensed attorney, public accountant, or firm of such 2678
attorneys or accountants, whose activities are incidental to the 2679
practice of the attorney's, accountant's, or firm's profession;2680

       (c) Any person that, for the account of others, engages in2681
the purchase or sale of securities that are issued and outstanding2682
before such purchase and sale, if a majority or more of the equity2683
interest of an issuer is sold in that transaction, and if, in the2684
case of a corporation, the securities sold in that transaction2685
represent a majority or more of the voting power of the2686
corporation in the election of directors;2687

       (d) Any person that brings an issuer together with a2688
potential investor and whose compensation is not directly or2689
indirectly based on the sale of any securities by the issuer to2690
the investor;2691

       (e) Any bank;2692

       (f) Any person that the division of securities by rule2693
exempts from the definition of "dealer" under division (E)(1) of2694
this section.2695

       (2) "Licensed dealer" means a dealer licensed under this2696
chapter.2697

       (F)(1) "Salesman" or "salesperson" means every natural2698
person, other than a dealer, who is employed, authorized, or2699
appointed by a dealer to sell securities within this state.2700

       (2) The general partners of a partnership, and the executive2701
officers of a corporation or unincorporated association, licensed2702
as a dealer are not salespersons within the meaning of this2703
definition, nor are such clerical or other employees of an issuer2704
or dealer as are employed for work to which the sale of securities2705
is secondary and incidental; but the division of securities may2706
require a license from any such partner, executive officer, or2707
employee if it determines that protection of the public2708
necessitates the licensing.2709

       (3) "Licensed salesperson" means a salesperson licensed under 2710
this chapter.2711

       (G) "Issuer" means every person who has issued, proposes to2712
issue, or issues any security.2713

       (H) "Director" means each director or trustee of a2714
corporation, each trustee of a trust, each general partner of a2715
partnership, except a partnership association, each manager of a2716
partnership association, and any person vested with managerial or2717
directory power over an issuer not having a board of directors or2718
trustees.2719

       (I) "Incorporator" means any incorporator of a corporation2720
and any organizer of, or any person participating, other than in a2721
representative or professional capacity, in the organization of an2722
unincorporated issuer.2723

       (J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent2724
practices," or "fraudulent transactions" means anything recognized2725
on or after July 22, 1929, as such in courts of law or equity; any2726
device, scheme, or artifice to defraud or to obtain money or2727
property by means of any false pretense, representation, or2728
promise; any fictitious or pretended purchase or sale of2729
securities; and any act, practice, transaction, or course of2730
business relating to the purchase or sale of securities that is2731
fraudulent or that has operated or would operate as a fraud upon2732
the seller or purchaser.2733

       (K) Except as otherwise specifically provided, whenever any2734
classification or computation is based upon "par value," as2735
applied to securities without par value, the average of the2736
aggregate consideration received or to be received by the issuer2737
for each class of those securities shall be used as the basis for2738
that classification or computation.2739

       (L)(1) "Intangible property" means patents, copyrights,2740
secret processes, formulas, services, good will, promotion and2741
organization fees and expenses, trademarks, trade brands, trade2742
names, licenses, franchises, any other assets treated as2743
intangible according to generally accepted accounting principles,2744
and securities, accounts receivable, or contract rights having no2745
readily determinable value.2746

       (2) "Tangible property" means all property other than2747
intangible property and includes securities, accounts receivable,2748
and contract rights, when the securities, accounts receivable, or2749
contract rights have a readily determinable value.2750

       (M) "Public utilities" means those utilities defined in2751
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised2752
Code; in the case of a foreign corporation, it means those2753
utilities defined as public utilities by the laws of its domicile;2754
and in the case of any other foreign issuer, it means those2755
utilities defined as public utilities by the laws of the situs of2756
its principal place of business. The term always includes2757
railroads whether or not they are so defined as public utilities.2758

       (N) "State" means any state of the United States, any2759
territory or possession of the United States, the District of2760
Columbia, and any province of Canada.2761

       (O) "Bank" means any bank, trust company, savings and loan2762
association, savings bank, or credit union that is incorporated or2763
organized under the laws of the United States, any state of the2764
United States, Canada, or any province of Canada and that is2765
subject to regulation or supervision by that country, state, or2766
province.2767

       (P) "Include," when used in a definition, does not exclude2768
other things or persons otherwise within the meaning of the term2769
defined.2770

       (Q)(1) "Registration by description" means that the2771
requirements of section 1707.08 of the Revised Code have been2772
complied with.2773

       (2) "Registration by qualification" means that the2774
requirements of sections 1707.09 and 1707.11 of the Revised Code2775
have been complied with.2776

       (3) "Registration by coordination" means that there has been2777
compliance with section 1707.091 of the Revised Code. Reference in2778
this chapter to registration by qualification also shall be deemed2779
to include registration by coordination unless the context2780
otherwise indicates.2781

       (R) "Intoxicating liquor" includes all liquids and compounds2782
that contain more than three and two-tenths per cent of alcohol by2783
weight and are fit for use for beverage purposes.2784

       (S) "Institutional investor" means any corporation, bank,2785
insurance company, pension fund or pension fund trust, employees'2786
profit-sharing fund or employees' profit-sharing trust, any2787
association engaged, as a substantial part of its business or2788
operations, in purchasing or holding securities, or any trust in2789
respect of which a bank is trustee or cotrustee. "Institutional2790
investor" does not include any business entity formed for the2791
primary purpose of evading sections 1707.01 to 1707.45 of the2792
Revised Code.2793

       (T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a,2794
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a,2795
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1,2796
"Investment Advisers Act of 1940," 54 Stat. 847, 15 U.S.C. 80b,2797
and "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C. 80a2798
mean the federal statutes of those names as amended before or2799
after March 18, 1999.2800

       (U) "Securities and exchange commission" means the securities 2801
and exchange commission established by the Securities Exchange Act 2802
of 1934.2803

       (V)(1) "Control bid" means the purchase of or offer to2804
purchase any equity security of a subject company from a resident2805
of this state if either of the following applies:2806

       (a) After the purchase of that security, the offeror would be 2807
directly or indirectly the beneficial owner of more than ten per 2808
cent of any class of the issued and outstanding equity securities 2809
of the issuer.2810

       (b) The offeror is the subject company, there is a pending2811
control bid by a person other than the issuer, and the number of2812
the issued and outstanding shares of the subject company would be2813
reduced by more than ten per cent.2814

       (2) For purposes of division (V)(1) of this section, "control 2815
bid" does not include any of the following:2816

       (a) A bid made by a dealer for the dealer's own account in2817
the ordinary course of business of buying and selling securities;2818

       (b) An offer to acquire any equity security solely in2819
exchange for any other security, or the acquisition of any equity2820
security pursuant to an offer, for the sole account of the2821
offeror, in good faith and not for the purpose of avoiding the2822
provisions of this chapter, and not involving any public offering2823
of the other security within the meaning of Section 4 of Title I2824
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),2825
as amended;2826

       (c) Any other offer to acquire any equity security, or the2827
acquisition of any equity security pursuant to an offer, for the2828
sole account of the offeror, from not more than fifty persons, in2829
good faith and not for the purpose of avoiding the provisions of2830
this chapter.2831

       (W) "Offeror" means a person who makes, or in any way2832
participates or aids in making, a control bid and includes persons2833
acting jointly or in concert, or who intend to exercise jointly or2834
in concert any voting rights attached to the securities for which2835
the control bid is made and also includes any subject company2836
making a control bid for its own securities.2837

       (X)(1) "Investment adviser" means any person who, for2838
compensation, engages in the business of advising others, either2839
directly or through publications or writings, as to the value of2840
securities or as to the advisability of investing in, purchasing,2841
or selling securities, or who, for compensation and as a part of2842
regular business, issues or promulgates analyses or reports2843
concerning securities.2844

       (2) "Investment adviser" does not mean any of the following:2845

       (a) Any attorney, accountant, engineer, or teacher, whose2846
performance of investment advisory services described in division2847
(X)(1) of this section is solely incidental to the practice of the2848
attorney's, accountant's, engineer's, or teacher's profession;2849

       (b) A publisher of any bona fide newspaper, news magazine, or 2850
business or financial publication of general and regular2851
circulation;2852

       (c) A person who acts solely as an investment adviser2853
representative;2854

       (d) A bank holding company, as defined in the "Bank Holding2855
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an2856
investment company;2857

       (e) A bank, or any receiver, conservator, or other2858
liquidating agent of a bank;2859

       (f) Any licensed dealer or licensed salesperson whose2860
performance of investment advisory services described in division2861
(X)(1) of this section is solely incidental to the conduct of the2862
dealer's or salesperson's business as a licensed dealer or2863
licensed salesperson and who receives no special compensation for2864
the services;2865

       (g) Any person, the advice, analyses, or reports of which do2866
not relate to securities other than securities that are direct2867
obligations of, or obligations guaranteed as to principal or2868
interest by, the United States, or securities issued or guaranteed2869
by corporations in which the United States has a direct or2870
indirect interest, and that have been designated by the secretary2871
of the treasury as exempt securities as defined in the "Securities2872
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c;2873

       (h) Any person that is excluded from the definition of2874
investment adviser pursuant to section 202(a)(11)(A) to (E) of the2875
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that2876
has received an order from the securities and exchange commission2877
under section 202(a)(11)(F) of the "Investment Advisers Act of2878
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not2879
within the intent of section 202(a)(11) of the Investment Advisers2880
Act of 1940.2881

       (i) A person who acts solely as a state retirement system 2882
investment officer;2883

       (j) Any other person that the division designates by rule, if 2884
the division finds that the designation is necessary or2885
appropriate in the public interest or for the protection of2886
investors or clients and consistent with the purposes fairly2887
intended by the policy and provisions of this chapter.2888

       (Y)(1) "Subject company" means an issuer that satisfies both2889
of the following:2890

       (a) Its principal place of business or its principal2891
executive office is located in this state, or it owns or controls2892
assets located within this state that have a fair market value of2893
at least one million dollars.2894

       (b) More than ten per cent of its beneficial or record equity 2895
security holders are resident in this state, more than ten per 2896
cent of its equity securities are owned beneficially or of record 2897
by residents in this state, or more than one thousand of its 2898
beneficial or record equity security holders are resident in this 2899
state.2900

       (2) The division of securities may adopt rules to establish2901
more specific application of the provisions set forth in division2902
(Y)(1) of this section. Notwithstanding the provisions set forth2903
in division (Y)(1) of this section and any rules adopted under2904
this division, the division, by rule or in an adjudicatory2905
proceeding, may make a determination that an issuer does not2906
constitute a "subject company" under division (Y)(1) of this2907
section if appropriate review of control bids involving the issuer2908
is to be made by any regulatory authority of another jurisdiction.2909

       (Z) "Beneficial owner" includes any person who directly or2910
indirectly through any contract, arrangement, understanding, or2911
relationship has or shares, or otherwise has or shares, the power2912
to vote or direct the voting of a security or the power to dispose2913
of, or direct the disposition of, the security. "Beneficial2914
ownership" includes the right, exercisable within sixty days, to2915
acquire any security through the exercise of any option, warrant,2916
or right, the conversion of any convertible security, or2917
otherwise. Any security subject to any such option, warrant,2918
right, or conversion privilege held by any person shall be deemed2919
to be outstanding for the purpose of computing the percentage of2920
outstanding securities of the class owned by that person, but2921
shall not be deemed to be outstanding for the purpose of computing2922
the percentage of the class owned by any other person. A person2923
shall be deemed the beneficial owner of any security beneficially2924
owned by any relative or spouse or relative of the spouse residing2925
in the home of that person, any trust or estate in which that2926
person owns ten per cent or more of the total beneficial interest2927
or serves as trustee or executor, any corporation or entity in2928
which that person owns ten per cent or more of the equity, and any2929
affiliate or associate of that person.2930

       (AA) "Offeree" means the beneficial or record owner of any2931
security that an offeror acquires or offers to acquire in2932
connection with a control bid.2933

       (BB) "Equity security" means any share or similar security,2934
or any security convertible into any such security, or carrying2935
any warrant or right to subscribe to or purchase any such2936
security, or any such warrant or right, or any other security2937
that, for the protection of security holders, is treated as an2938
equity security pursuant to rules of the division of securities.2939

       (CC)(1) "Investment adviser representative" means a2940
supervised person of an investment adviser, provided that the2941
supervised person has more than five clients who are natural2942
persons other than excepted persons defined in division (EE) of2943
this section, and that more than ten per cent of the supervised2944
person's clients are natural persons other than excepted persons2945
defined in division (EE) of this section. "Investment adviser2946
representative" does not mean any of the following:2947

       (a) A supervised person that does not on a regular basis2948
solicit, meet with, or otherwise communicate with clients of the2949
investment adviser;2950

       (b) A supervised person that provides only investment2951
advisory services described in division (X)(1) of this section by2952
means of written materials or oral statements that do not purport2953
to meet the objectives or needs of specific individuals or2954
accounts;2955

       (c) Any other person that the division designates by rule, if 2956
the division finds that the designation is necessary or2957
appropriate in the public interest or for the protection of2958
investors or clients and is consistent with the provisions fairly2959
intended by the policy and provisions of this chapter.2960

       (2) For the purpose of the calculation of clients in division2961
(CC)(1) of this section, a natural person and the following 2962
persons are deemed a single client: Any minor child of the natural 2963
person; any relative, spouse, or relative of the spouse of the 2964
natural person who has the same principal residence as the natural 2965
person; all accounts of which the natural person or the persons 2966
referred to in division (CC)(2) of this section are the only 2967
primary beneficiaries; and all trusts of which the natural person 2968
or persons referred to in division (CC)(2) of this section are the2969
only primary beneficiaries. Persons who are not residents of the2970
United States need not be included in the calculation of clients2971
under division (CC)(1) of this section.2972

       (3) If subsequent to March 18, 1999, amendments are enacted2973
or adopted defining "investment adviser representative" for2974
purposes of the Investment Advisers Act of 1940 or additional2975
rules or regulations are promulgated by the securities and2976
exchange commission regarding the definition of "investment2977
adviser representative" for purposes of the Investment Advisers2978
Act of 1940, the division of securities shall, by rule, adopt the2979
substance of the amendments, rules, or regulations, unless the2980
division finds that the amendments, rules, or regulations are not2981
necessary for the protection of investors or in the public2982
interest.2983

       (DD) "Supervised person" means a natural person who is any of 2984
the following:2985

       (1) A partner, officer, or director of an investment adviser, 2986
or other person occupying a similar status or performing similar 2987
functions with respect to an investment adviser;2988

       (2) An employee of an investment adviser;2989

       (3) A person who provides investment advisory services2990
described in division (X)(1) of this section on behalf of the2991
investment adviser and is subject to the supervision and control2992
of the investment adviser.2993

       (EE) "Excepted person" means a natural person to whom any of2994
the following applies:2995

       (1) Immediately after entering into the investment advisory2996
contract with the investment adviser, the person has at least2997
seven hundred fifty thousand dollars under the management of the2998
investment adviser.2999

       (2) The investment adviser reasonably believes either of the3000
following at the time the investment advisory contract is entered3001
into with the person:3002

       (a) The person has a net worth, together with assets held3003
jointly with a spouse, of more than one million five hundred3004
thousand dollars.3005

       (b) The person is a qualified purchaser as defined in3006
division (FF) of this section.3007

       (3) Immediately prior to entering into an investment advisory 3008
contract with the investment adviser, the person is either of the 3009
following:3010

       (a) An executive officer, director, trustee, general partner, 3011
or person serving in a similar capacity, of the investment 3012
adviser;3013

       (b) An employee of the investment adviser, other than an3014
employee performing solely clerical, secretarial, or3015
administrative functions or duties for the investment adviser,3016
which employee, in connection with the employee's regular3017
functions or duties, participates in the investment activities of3018
the investment adviser, provided that, for at least twelve months,3019
the employee has been performing such nonclerical, nonsecretarial,3020
or nonadministrative functions or duties for or on behalf of the3021
investment adviser or performing substantially similar functions3022
or duties for or on behalf of another company.3023

       If subsequent to March 18, 1999, amendments are enacted or3024
adopted defining "excepted person" for purposes of the Investment3025
Advisers Act of 1940 or additional rules or regulations are3026
promulgated by the securities and exchange commission regarding3027
the definition of "excepted person" for purposes of the Investment3028
Advisers Act of 1940, the division of securities shall, by rule,3029
adopt the substance of the amendments, rules, or regulations,3030
unless the division finds that the amendments, rules, or3031
regulations are not necessary for the protection of investors or3032
in the public interest.3033

       (FF)(1) "Qualified purchaser" means either of the following:3034

       (a) A natural person who owns not less than five million3035
dollars in investments as defined by rule by the division of3036
securities;3037

       (b) A natural person, acting for the person's own account or3038
accounts of other qualified purchasers, who in the aggregate owns3039
and invests on a discretionary basis, not less than twenty-five3040
million dollars in investments as defined by rule by the division3041
of securities.3042

       (2) If subsequent to March 18, 1999, amendments are enacted3043
or adopted defining "qualified purchaser" for purposes of the3044
Investment Advisers Act of 1940 or additional rules or regulations3045
are promulgated by the securities and exchange commission3046
regarding the definition of "qualified purchaser" for purposes of3047
the Investment Advisers Act of 1940, the division of securities3048
shall, by rule, adopt the amendments, rules, or regulations,3049
unless the division finds that the amendments, rules, or3050
regulations are not necessary for the protection of investors or3051
in the public interest.3052

       (GG)(1) "Purchase" has the full meaning of "purchase" as3053
applied by or accepted in courts of law or equity and includes3054
every acquisition of, or attempt to acquire, a security or an3055
interest in a security. "Purchase" also includes a contract to3056
purchase, an exchange, an attempt to purchase, an option to3057
purchase, a solicitation of a purchase, a solicitation of an offer3058
to sell, a subscription, or an offer to purchase, directly or3059
indirectly, by agent, circular, pamphlet, advertisement, or3060
otherwise.3061

       (2) "Purchase" means any act by which a purchase is made.3062

       (3) Any security given with, or as a bonus on account of, any 3063
purchase of securities is conclusively presumed to constitute a 3064
part of the subject of that purchase.3065

       (HH) "Life settlement interest" means the entire interest or3066
any fractional interest in an insurance policy or certificate of3067
insurance, or in an insurance benefit under such a policy or3068
certificate, that is the subject of a life settlement contract.3069

       For purposes of this division, "life settlement contract"3070
means an agreement for the purchase, sale, assignment, transfer,3071
devise, or bequest of any portion of the death benefit or3072
ownership of any life insurance policy or contract, in return for3073
consideration or any other thing of value that is less than the3074
expected death benefit of the life insurance policy or contract.3075
"Life settlement contract" includes a viatical settlement contract3076
as defined in section 3916.01 of the Revised Code, but does not3077
include any of the following:3078

       (1) A loan by an insurer under the terms of a life insurance3079
policy, including, but not limited to, a loan secured by the cash3080
value of the policy;3081

       (2) An agreement with a bank that takes an assignment of a3082
life insurance policy as collateral for a loan;3083

       (3) The provision of accelerated benefits as defined in3084
section 3915.21 of the Revised Code;3085

       (4) Any agreement between an insurer and a reinsurer;3086

       (5) An agreement by an individual to purchase an existing3087
life insurance policy or contract from the original owner of the3088
policy or contract, if the individual does not enter into more3089
than one life settlement contract per calendar year;3090

       (6) The initial purchase of an insurance policy or3091
certificate of insurance from its owner by a viatical settlement3092
provider, as defined in section 3916.01 of the Revised Code, that3093
is licensed under Chapter 3916. of the Revised Code.3094

       (II) "State retirement system" means the public employees 3095
retirement system, Ohio police and fire pension fund, state 3096
teachers retirement system, school employees retirement system, 3097
and state highway patrol retirement system.3098

        (JJ) "State retirement system investment officer" means an 3099
individual employed by a state retirement system as a chief 3100
investment officer, assistant financial officer, or the person in 3101
charge of a class of assets.3102

       Sec. 1707.03.  (A) As used in this section, "exempt" means3103
that, except in the case of securities the right to buy, sell, or3104
deal in which has been suspended or revoked under an existing3105
order of the division of securities under section 1707.13 of the3106
Revised Code or under a cease and desist order under division 3107
(H)(G) of section 1707.23 of the Revised Code, transactions in3108
securities may be carried on and completed without compliance with 3109
sections 1707.08 to 1707.11 of the Revised Code.3110

       (B) A sale of securities made by or on behalf of a bona fide3111
owner, neither the issuer nor a dealer, is exempt if the sale is3112
made in good faith and not for the purpose of avoiding this3113
chapter and is not made in the course of repeated and successive3114
transactions of a similar character. Any sale of securities over a 3115
stock exchange that is lawfully conducted in this state and3116
regularly open for public patronage and that has been established3117
and operated for a period of at least five years prior to the sale3118
at a commission not exceeding the commission regularly charged in3119
such transactions also is exempt.3120

       (C) The sale of securities by executors, administrators,3121
receivers, trustees, or anyone acting in a fiduciary capacity is3122
exempt, where such relationship was created by law, by a will, or3123
by judicial authority, and where such sales are subject to3124
approval by, or are made in pursuance to authority granted by, any3125
court of competent jurisdiction or are otherwise authorized and3126
lawfully made by such fiduciary.3127

       (D) A sale to the issuer, to a dealer, or to an institutional 3128
investor is exempt.3129

       (E) A sale in good faith, and not for the purpose of avoiding 3130
this chapter, by a pledgee of a security pledged for a bona fide 3131
debt is exempt.3132

       (F) The sale at public auction by a corporation of shares of3133
its stock because of delinquency in payment for the shares is3134
exempt.3135

       (G)(1) The giving of any conversion right with, or on account 3136
of the purchase of, any security that is exempt, is the subject 3137
matter of an exempt transaction, has been registered by3138
description, by coordination, or by qualification, or is the3139
subject matter of a transaction that has been registered by3140
description is exempt.3141

       (2) The giving of any subscription right, warrant, or option3142
to purchase a security or right to receive a security upon3143
exchange, which security is exempt at the time the right, warrant,3144
or option to purchase or right to receive is given, is the subject3145
matter of an exempt transaction, is registered by description, by3146
coordination, or by qualification, or is the subject matter of a3147
transaction that has been registered by description is exempt.3148

       (3) The giving of any subscription right or any warrant or3149
option to purchase a security, which right, warrant, or option3150
expressly provides that it shall not be exercisable except for a3151
security that at the time of the exercise is exempt, is the3152
subject matter of an exempt transaction, is registered by3153
description, by coordination, or by qualification, or at such time3154
is the subject matter of a transaction that has been registered by3155
description is exempt.3156

       (H) The sale of notes, bonds, or other evidences of3157
indebtedness that are secured by a mortgage lien upon real estate,3158
leasehold estate other than oil, gas, or mining leasehold, or3159
tangible personal property, or which evidence of indebtedness is3160
due under or based upon a conditional-sale contract, if all such3161
notes, bonds, or other evidences of indebtedness are sold to a3162
single purchaser at a single sale, is exempt.3163

       (I) The delivery of securities by the issuer on the exercise3164
of conversion rights, the sale of securities by the issuer on3165
exercise of subscription rights or of warrants or options to3166
purchase securities, the delivery of voting-trust certificates for3167
securities deposited under a voting-trust agreement, the delivery3168
of deposited securities on surrender of voting-trust certificates,3169
and the delivery of final certificates on surrender of interim3170
certificates are exempt; but the sale of securities on exercise of3171
subscription rights, warrants, or options is not an exempt3172
transaction unless those rights, warrants, or options when granted3173
were the subject matter of an exempt transaction under division3174
(G) of this section or were registered by description, by3175
coordination, or by qualification.3176

       (J) The sale of securities by a bank, savings and loan3177
association, savings bank, or credit union organized under the3178
laws of the United States or of this state is exempt if at a3179
profit to that seller of not more than two per cent of the total3180
sale price of the securities.3181

       (K)(1) The distribution by a corporation of its securities to 3182
its security holders as a share dividend or other distribution out 3183
of earnings or surplus is exempt.3184

       (2) The exchange or distribution by the issuer of any of its3185
securities or of the securities of any of the issuer's wholly3186
owned subsidiaries exclusively with or to its existing security3187
holders, if no commission or other remuneration is given directly3188
or indirectly for soliciting the exchange, is exempt.3189

       (3) The sale of preorganization subscriptions for shares of3190
stock of a corporation prior to the incorporation of the3191
corporation is exempt, when the sale is evidenced by a written3192
agreement, no remuneration is given, or promised, directly or3193
indirectly, for or in connection with the sale of those3194
securities, and no consideration is received, directly or3195
indirectly, by any person from the purchasers of those securities3196
until registration by qualification, by coordination, or by3197
description of those securities is made under this chapter.3198

       (L) The issuance of securities in exchange for one or more3199
bona fide outstanding securities, claims, or property interests,3200
not including securities sold for a consideration payable in whole3201
or in part in cash, under a plan of reorganization,3202
recapitalization, or refinancing approved by a court pursuant to3203
the Bankruptcy Act of the United States or to any other federal3204
act giving any federal court jurisdiction over such plan of3205
reorganization, or under a plan of reorganization approved by a3206
court of competent jurisdiction of any state of the United States3207
is exempt. As used in this division, "reorganization,"3208
"recapitalization," and "refinancing" have the same meanings as in3209
section 1707.04 of the Revised Code.3210

       (M) A sale by a licensed dealer, acting either as principal3211
or as agent, of securities issued and outstanding before the sale3212
is exempt, unless the sale is of one or more of the following:3213

       (1) Securities constituting the whole or a part of an unsold3214
allotment to or subscription by a dealer as an underwriter or3215
other participant in the distribution of those securities by the3216
issuer, whether that distribution is direct or through an3217
underwriter, provided that, if the issuer is such by reason of3218
owning one-fourth or more of those securities, the dealer has3219
knowledge of this fact or reasonable cause to believe this fact;3220

       (2) Any class of shares issued by a corporation when the3221
number of beneficial owners of that class is less than3222
twenty-five, with the record owner of securities being deemed the3223
beneficial owner for this purpose, in the absence of actual3224
knowledge to the contrary;3225

       (3) Securities that within one year were purchased outside3226
this state or within one year were transported into this state, if3227
the dealer has knowledge or reasonable cause to believe, before3228
the sale of those securities, that within one year they were3229
purchased outside this state or within one year were transported3230
into this state; but such a sale of those securities is exempt if3231
any of the following occurs:3232

       (a) A recognized securities manual contains the names of the3233
issuer's officers and directors, a balance sheet of the issuer as3234
of a date within eighteen months, and a profit and loss statement3235
for either the fiscal year preceding that date or the most recent3236
year of operations;3237

       (b) Those securities, or securities of the same class, within 3238
one year were registered or qualified under section 1707.09 or 3239
1707.091 of the Revised Code, and that registration or3240
qualification is in full force and effect;3241

       (c) The sale is made by a licensed dealer on behalf of the3242
bona fide owner of those securities in accordance with division3243
(B) of this section;3244

       (d) Those securities were transported into Ohio in a3245
transaction of the type described in division (L), (K), or (I) of3246
this section, or in a transaction registered under division (A) of3247
section 1707.06 of the Revised Code.3248

       (N) For the purpose of this division and division (M) of this 3249
section, "underwriter" means any person who has purchased from an 3250
issuer with a view to, or sells for an issuer in connection with, 3251
the distribution of any security, or who participates directly or 3252
indirectly in any such undertaking or in the underwriting thereof, 3253
but "underwriter" does not include a person whose interest is 3254
limited to a discount, commission, or profit from the underwriter 3255
or from a dealer that is not in excess of the customary 3256
distributors' or sellers' discount, commission, or profit; and3257
"issuer" includes any person or any group of persons acting in 3258
concert in the sale of such securities, owning beneficially 3259
one-fourth or more of the outstanding securities of the class 3260
involved in the transactions in question, with the record owner of 3261
securities being deemed the beneficial owner for this purpose, in 3262
the absence of actual knowledge to the contrary.3263

       (O)(1) The sale of any equity security is exempt if all the3264
following conditions are satisfied:3265

       (a) The sale is by the issuer of the security.3266

       (b) The total number of purchasers in this state of all3267
securities issued or sold by the issuer in reliance upon this3268
exemption during the period of one year ending with the date of3269
the sale does not exceed ten. A sale of securities registered3270
under this chapter or sold pursuant to an exemption under this3271
chapter other than this exemption shall not be integrated with a3272
sale pursuant to this exemption in computing the number of3273
purchasers under this exemption.3274

       (c) No advertisement, article, notice, or other communication 3275
published in any newspaper, magazine, or similar medium or 3276
broadcast over television or radio is used in connection with the 3277
sale, but the use of an offering circular or other communication 3278
delivered by the issuer to selected individuals does not destroy 3279
this exemption.3280

       (d) The issuer reasonably believes after reasonable3281
investigation that the purchaser is purchasing for investment.3282

       (e) The aggregate commission, discount, and other3283
remuneration, excluding legal, accounting, and printing fees, paid3284
or given directly or indirectly does not exceed ten per cent of3285
the initial offering price.3286

       (f) Any such commission, discount, or other remuneration for3287
sales in this state is paid or given only to dealers or3288
salespersons registered pursuant to this chapter.3289

       (2) For the purposes of division (O)(1) of this section, each 3290
of the following is deemed to be a single purchaser of a security: 3291
husband and wife, a child and its parent or guardian when the 3292
parent or guardian holds the security for the benefit of the 3293
child, a corporation, a limited liability company, a partnership, 3294
an association or other unincorporated entity, a joint-stock 3295
company, or a trust, but only if the corporation, limited 3296
liability company, partnership, association, entity, joint-stock 3297
company, or trust was not formed for the purpose of purchasing the 3298
security.3299

       (3) As used in division (O)(1) of this section, "equity3300
security" means any stock or similar security of a corporation or3301
any membership interest in a limited liability company; or any3302
security convertible, with or without consideration, into such a3303
security, or carrying any warrant or right to subscribe to or3304
purchase such a security; or any such warrant or right; or any3305
other security that the division considers necessary or3306
appropriate, by such rules as it may prescribe in the public3307
interest or for the protection of investors, to treat as an equity3308
security.3309

       (P) The sale of securities representing interests in or under 3310
profit-sharing or participation agreements relating to oil or gas 3311
wells located in this state, or representing interests in or under 3312
oil or gas leases of real estate situated in this state, is exempt 3313
if the securities are issued by an individual, partnership, 3314
limited partnership, partnership association, syndicate, pool, 3315
trust or trust fund, or other unincorporated association and if 3316
each of the following conditions is complied with:3317

       (1) The beneficial owners of the securities do not, and will3318
not after the sale, exceed five natural persons;3319

       (2) The securities constitute or represent interests in not3320
more than one oil or gas well;3321

       (3) A certificate or other instrument in writing is furnished 3322
to each purchaser of the securities at or before the consummation 3323
of the sale, disclosing the maximum commission, compensation for 3324
services, cost of lease, and expenses with respect to the sale of 3325
such interests and with respect to the promotion, development, and 3326
management of the oil or gas well, and the total of that 3327
commission, compensation, costs, and expenses does not exceed 3328
twenty-five per cent of the aggregate interests in the oil or gas 3329
well, exclusive of any landowner's rental or royalty;3330

       (4) The sale is made in good faith and not for the purpose of 3331
avoiding this chapter.3332

       (Q) The sale of any security is exempt if all of the3333
following conditions are satisfied:3334

       (1) The provisions of section 5 of the Securities Act of 1933 3335
do not apply to the sale by reason of an exemption under section 4 3336
(2) of that act.3337

       (2) The aggregate commission, discount, and other3338
remuneration, excluding legal, accounting, and printing fees, paid3339
or given directly or indirectly does not exceed ten per cent of3340
the initial offering price.3341

       (3) Any such commission, discount, or other remuneration for3342
sales in this state is paid or given only to dealers or3343
salespersons registered under this chapter.3344

       (4) The issuer or dealer files with the division of3345
securities, not later than sixty days after the sale, a report3346
setting forth the name and address of the issuer, the total amount3347
of the securities sold under this division, the number of persons3348
to whom the securities were sold, the price at which the3349
securities were sold, and the commissions or discounts paid or3350
given.3351

       (5) The issuer pays a filing fee of one hundred dollars for3352
the first filing and fifty dollars for every subsequent filing3353
during each calendar year.3354

       (R) A sale of a money order, travelers' check, or other3355
instrument for the transmission of money by a person qualified to3356
engage in such business under section 1109.60 or Chapter 1315. of3357
the Revised Code is exempt.3358

       (S) A sale by a licensed dealer of securities that are in the 3359
process of registration under the Securities Act of 1933, unless 3360
exempt under that act, and that are in the process of3361
registration, if registration is required under this chapter, is3362
exempt, provided that no sale of that nature shall be consummated3363
prior to the registration by description or qualification of the3364
securities.3365

       (T) The execution by a licensed dealer of orders for the3366
purchase of any security is exempt, provided that the dealer acts3367
only as agent for the purchaser, has made no solicitation of the3368
order to purchase the security, has no interest in the3369
distribution of the security, and delivers to the purchaser3370
written confirmation of the transaction that clearly itemizes the3371
dealer's commission. "Solicitation," as used in this division,3372
means solicitation of the order for the specific security3373
purchased and does not include general solicitations or3374
advertisements of any kind.3375

       (U) The sale insofar as the security holders of a person are3376
concerned, where, pursuant to statutory provisions of the3377
jurisdiction under which that person is organized or pursuant to3378
provisions contained in its articles of incorporation, certificate3379
of incorporation, partnership agreement, declaration of trust,3380
trust indenture, or similar controlling instrument, there is3381
submitted to the security holders, for their vote or consent, (1)3382
a plan or agreement for a reclassification of securities of that3383
person that involves the substitution of a security of that person3384
for another security of that person, (2) a plan or agreement of3385
merger or consolidation or a similar plan or agreement of3386
acquisition in which the securities of that person held by the3387
security holders will become or be exchanged for securities of any3388
other person, or (3) a plan or agreement for a combination as3389
defined in division (Q) of section 1701.01 of the Revised Code or3390
a similar plan or agreement for the transfer of assets of that3391
person to another person in consideration of the issuance of3392
securities of any person, is exempt if, with respect to any of the3393
foregoing transactions, either of the following conditions is3394
satisfied:3395

       (a) The securities to be issued to the security holders are3396
effectively registered under sections 6 to 8 of the Securities Act3397
of 1933 and offered and sold in compliance with section 5 of that3398
act;3399

       (b) At least twenty days prior to the date on which a meeting 3400
of the security holders is held or the earliest date on which 3401
corporate action may be taken when no meeting is held, there is 3402
submitted to the security holders, by that person, or by the3403
person whose securities are to be issued in the transaction,3404
information substantially equivalent to the information that would3405
be required to be included in a proxy statement or information3406
statement prepared by or on behalf of the management of an issuer3407
subject to section 14(a) or 14(c) of the Securities Exchange Act3408
of 1934.3409

       (V) The sale of any security is exempt if the division by3410
rule finds that registration is not necessary or appropriate in3411
the public interest or for the protection of investors.3412

       (W) Any offer or sale of securities made in reliance on the3413
exemptions provided by Rule 505 of Regulation D made pursuant to3414
the Securities Act of 1933 and the conditions and definitions3415
provided by Rules 501 to 503 thereunder is exempt if the offer or3416
sale satisfies all of the following conditions:3417

       (1) No commission or other remuneration is given, directly or 3418
indirectly, to any person for soliciting or selling to any person 3419
in this state in reliance on the exemption under this division, 3420
except to dealers licensed in this state.3421

       (2)(a) Unless the cause for disqualification is waived under3422
division (W)(2)(b) of this section, no exemption under this3423
section is available for the securities of an issuer unless the3424
issuer did not know and in the exercise of reasonable care could3425
not have known that any of the following applies to any of the3426
persons described in Rule 262(a) to (c) of Regulation A under the3427
Securities Act of 1933:3428

       (i) The person has filed an application for registration or3429
qualification that is the subject of an effective order entered3430
against the issuer, its officers, directors, general partners,3431
controlling persons or affiliates thereof, pursuant to the law of3432
any state within five years before the filing of a notice required3433
under division (W)(3) of this section denying effectiveness to, or3434
suspending or revoking the effectiveness of, the registration3435
statement.3436

       (ii) The person has been convicted of any offense in3437
connection with the offer, sale, or purchase of any security or3438
franchise, or any felony involving fraud or deceit, including, but3439
not limited to, forgery, embezzlement, fraud, theft, or conspiracy3440
to defraud.3441

       (iii) The person is subject to an effective administrative3442
order or judgment that was entered by a state securities3443
administrator within five years before the filing of a notice3444
required under division (W)(3) of this section and that prohibits,3445
denies, or revokes the use of any exemption from securities3446
registration, prohibits the transaction of business by the person3447
as a dealer, or is based on fraud, deceit, an untrue statement of3448
a material fact, or an omission to state a material fact.3449

       (iv) The person is subject to any order, judgment, or decree3450
of any court entered within five years before the filing of a3451
notice required under division (W)(3) of this section,3452
temporarily, preliminarily, or permanently restraining or3453
enjoining the person from engaging in or continuing any conduct or3454
practice in connection with the offer, sale, or purchase of any3455
security, or the making of any false filing with any state.3456

       (b)(i) Any disqualification under this division involving a3457
dealer may be waived if the dealer is or continues to be licensed3458
in this state as a dealer after notifying the commissioner of the3459
act or event causing disqualification.3460

       (ii) The commissioner may waive any disqualification under3461
this paragraph upon a showing of good cause that it is not3462
necessary under the circumstances that use of the exemption be3463
denied.3464

       (3) Not later than five business days before the earlier of3465
the date on which the first use of an offering document or the3466
first sale is made in this state in reliance on the exemption3467
under this division, there is filed with the commissioner a notice3468
comprised of offering material in compliance with the requirements3469
of Rule 502 of Regulation D under the Securities Act of 1933 and a3470
fee of one hundred dollars. Material amendments to the offering3471
document shall be filed with the commissioner not later than the3472
date of their first use in this state.3473

       (4) The aggregate commission, discount, and other3474
remuneration paid or given, directly or indirectly, does not3475
exceed twelve per cent of the initial offering price, excluding3476
legal, accounting, and printing fees.3477

       (X) Any offer or sale of securities made in reliance on the3478
exemption provided in Rule 506 of Regulation D under the3479
Securities Act of 1933, and in accordance with Rules 501 to 503 of3480
Regulation D under the Securities Act of 1933, is exempt provided3481
that all of the following apply:3482

       (1) The issuer makes a notice filing with the division on3483
form D of the securities and exchange commission within fifteen3484
days of the first sale in this state;3485

       (2) Any commission, discount, or other remuneration for sales 3486
of securities in this state is paid or given only to dealers or 3487
salespersons licensed under this chapter;3488

       (3) The issuer pays a filing fee of one hundred dollars to3489
the division; however, no filing fee shall be required to file3490
amendments to the form D of the securities and exchange3491
commission.3492

       (Y) The offer or sale of securities by an issuer is exempt3493
provided that all of the following apply:3494

       (1) The sale of securities is made only to persons who are,3495
or who the issuer reasonably believes are, accredited investors as3496
defined in Rule 501 of Regulation D under the Securities Act of3497
1933.3498

       (2) The issuer reasonably believes that all purchasers are3499
purchasing for investment and not with a view to or for sale in3500
connection with a distribution of the security. Any resale of a3501
security sold in reliance on this exemption within twelve months3502
of sale shall be presumed to be with a view to distribution and3503
not for investment, except a resale to which any of the following3504
applies:3505

       (a) The resale is pursuant to a registration statement3506
effective under section 1707.09 or 1707.091 of the Revised Code.3507

       (b) The resale is to an accredited investor, as defined in3508
Rule 501 of Regulation D under the Securities Act of 1933.3509

       (c) The resale is to an institutional investor pursuant to3510
the exemptions under division (B) or (D) of this section.3511

       (3) The exemption under this division is not available to an3512
issuer that is in the development stage and that either has no3513
specific business plan or purpose or has indicated that its3514
business plan is to engage in a merger or acquisition with an3515
unidentified company or companies, or other entities or persons.3516

       (4) The exemption under this division is not available to an3517
issuer, if the issuer, any of the issuer's predecessors, any3518
affiliated issuer, any of the issuer's directors, officers,3519
general partners, or beneficial owners of ten per cent or more of3520
any class of its equity securities, any of the issuer's promoters3521
presently connected with the issuer in any capacity, any3522
underwriter of the securities to be offered, or any partner,3523
director, or officer of such underwriter:3524

       (a) Within the past five years, has filed a registration3525
statement that is the subject of a currently effective3526
registration stop order entered by any state securities3527
administrator or the securities and exchange commission;3528

       (b) Within the past five years, has been convicted of any3529
criminal offense in connection with the offer, purchase, or sale3530
of any security, or involving fraud or deceit;3531

       (c) Is currently subject to any state or federal3532
administrative enforcement order or judgment, entered within the3533
past five years, finding fraud or deceit in connection with the3534
purchase or sale of any security;3535

       (d) Is currently subject to any order, judgment, or decree of 3536
any court of competent jurisdiction, entered within the past five 3537
years, that temporarily, preliminarily, or permanently restrains 3538
or enjoins the party from engaging in or continuing to engage in 3539
any conduct or practice involving fraud or deceit in connection 3540
with the purchase or sale of any security.3541

       (5) Division (Y)(4) of this section is inapplicable if any of 3542
the following applies:3543

       (a) The party subject to the disqualification is licensed or3544
registered to conduct securities business in the state in which3545
the order, judgment, or decree creating the disqualification was3546
entered against the party described in division (Y)(4) of this3547
section.3548

       (b) Before the first offer is made under this exemption, the3549
state securities administrator, or the court or regulatory3550
authority that entered the order, judgment, or decree, waives the3551
disqualification.3552

       (c) The issuer did not know and, in the exercise of3553
reasonable care based on reasonable investigation, could not have3554
known that a disqualification from the exemption existed under3555
division (Y)(4) of this section.3556

       (6) A general announcement of the proposed offering may be3557
made by any means; however, the general announcement shall include3558
only the following information, unless additional information is3559
specifically permitted by the division by rule:3560

       (a) The name, address, and telephone number of the issuer of3561
the securities;3562

       (b) The name, a brief description, and price of any security3563
to be issued;3564

       (c) A brief description of the business of the issuer;3565

       (d) The type, number, and aggregate amount of securities3566
being offered;3567

       (e) The name, address, and telephone number of the person to3568
contact for additional information; and3569

       (f) A statement indicating all of the following:3570

       (i) Sales will only be made to accredited investors as3571
defined in Rule 501 of Regulation D under the Securities Act of3572
1933;3573

       (ii) No money or other consideration is being solicited or3574
will be accepted by way of this general announcement;3575

       (iii) The securities have not been registered with or3576
approved by any state securities administrator or the securities3577
and exchange commission and are being offered and sold pursuant to3578
an exemption from registration.3579

       (7) The issuer, in connection with an offer, may provide3580
information in addition to the general announcement described in3581
division (Y)(6) of this section, provided that either of the3582
following applies:3583

       (a) The information is delivered through an electronic3584
database that is restricted to persons that are accredited3585
investors as defined in Rule 501 of Regulation D under the3586
Securities Act of 1933.3587

       (b) The information is delivered after the issuer reasonably3588
believes that the prospective purchaser is an accredited investor3589
as defined in Rule 501 of Regulation D under the Securities Act of3590
1933.3591

       (8) No telephone solicitation shall be done, unless prior to3592
placing the telephone call, the issuer reasonably believes that3593
the prospective purchaser to be solicited is an accredited3594
investor as defined in Rule 501 of Regulation D under the3595
Securities Act of 1933.3596

       (9) Dissemination of the general announcement described in3597
division (Y)(6) of this section to persons that are not accredited3598
investors, as defined in Rule 501 of Regulation D under the3599
Securities Act of 1933, does not disqualify the issuer from3600
claiming an exemption under this division.3601

       (10) The issuer shall file with the division notice of the3602
offering of securities within fifteen days after notice of the3603
offering is made or a general announcement is made in this state.3604
The filing shall be on forms adopted by the division and shall3605
include a copy of the general announcement, if one is made3606
regarding the proposed offering, and copies of any offering3607
materials, circulars, or prospectuses. A filing fee of one hundred 3608
dollars also shall be included.3609

       Sec. 1707.162. (A) No person shall act as a state retirement 3610
system investment officer unless the person is licensed as a state 3611
retirement system investment officer by the division of 3612
securities.3613

       (B) No state retirement system investment officer shall act 3614
as a dealer, salesperson, investment advisor, or investment 3615
advisor representative.3616

       Sec. 1707.163. (A) Application for a state retirement system 3617
investment officer's license shall be made in accordance with this 3618
section by filing with the division of securities the information, 3619
materials, and forms specified in rules adopted by the division.3620

        (B)(1) The division may investigate any applicant for a 3621
license and may require any additional information as it considers 3622
necessary to determine the applicant's business repute and 3623
qualifications to act as an investment officer.3624

        (2) If the application for a state retirement system 3625
investment officer's license involves investigation outside of 3626
this state, the applicant may be required by the division to 3627
advance sufficient funds to pay any of the actual expenses of the 3628
investigation. The division shall furnish the applicant with an 3629
itemized statement of the expenses the applicant is required to 3630
pay.3631

        (C) The division shall by rule require an applicant for a 3632
state retirement system investment officer's license to pass an 3633
examination designated by the division or achieve a specified 3634
professional designation unless the applicant meets both of the 3635
following requirements:3636

        (1) Acts as a state retirement system investment officer on 3637
the effective date of this section;3638

        (2) Has experience or equivalent education acceptable to the 3639
division.3640

        (D) If the division finds that the applicant is of good 3641
business repute, appears to be qualified to act as a state 3642
retirement system investment officer, and has complied with this 3643
chapter and rules adopted under this chapter by the division, the 3644
division, on payment of the fees prescribed by division (B) of 3645
section 1707.17 of the Revised Code, shall issue to the applicant 3646
a license authorizing the applicant to act as a state retirement 3647
system investment officer.3648

       Sec. 1707.17.  (A)(1) The license of every dealer in and3649
salesperson of securities shall expire on the thirty-first day of3650
December of each year, and may be renewed upon the filing with the3651
division of securities of an application for renewal, and the3652
payment of the fee prescribed in this section. The division shall3653
give notice, without unreasonable delay, of its action on any3654
application for renewal of a dealer's or salesperson's license.3655

       (2) The license of every investment adviser and investment3656
adviser representative licensed under section 1707.141 or 1707.1613657
of the Revised Code shall expire on the thirty-first day of3658
December of each year. The licenses may be renewed upon the filing 3659
with the division of an application for renewal, and the payment 3660
of the fee prescribed in division (B) of this section. The3661
division shall give notice, without unreasonable delay, of its3662
action on any application for renewal.3663

       (3) An investment adviser required to make a notice filing3664
under division (B) of section 1707.141 of the Revised Code3665
annually shall file with the division the notice filing and the3666
fee prescribed in division (B) of this section, no later than the3667
thirty-first day of December of each year.3668

       (4) The license of every state retirement system investment 3669
officer licensed under section 1707.163 of the Revised Code shall 3670
expire on the thirtieth day of June of each year. The licenses may 3671
be renewed on the filing with the division of an application for 3672
renewal, and the payment of the fee prescribed in division (B) of 3673
this section. The division shall give notice, without unreasonable 3674
delay, of its action on any application for renewal.3675

       (B)(1) The fee for each dealer's license, and for each annual3676
renewal thereof, shall be one hundred dollars. The fee for the3677
examination of applicant dealers, when administered by the3678
division, shall be seventy-five dollars.3679

       (2) The fee for each salesperson's license, and for each3680
annual renewal thereof, shall be fifty dollars. The fee for the3681
examination of an applicant salesperson, when administered by the3682
division, shall be fifty dollars.3683

       (3) The fee for each investment adviser's license, and for3684
each annual renewal thereof, shall be fifty dollars.3685

       (4) The fee for each investment adviser notice filing3686
required by division (B) of section 1707.141 of the Revised Code3687
shall be fifty dollars.3688

       (5) The fee for each investment adviser representative's3689
license, and for each annual renewal thereof, shall be thirty-five3690
dollars.3691

       (6) The fee for each state retirement system investment 3692
officer's license, and for each annual renewal thereof, shall be 3693
fifty dollars.3694

       (C) A dealer's, salesperson's, investment adviser's, or3695
investment adviser representative's, or state retirement system 3696
investment officer's license may be issued at any time for the 3697
remainder of the calendar year. In that event, the annual fee 3698
shall not be reduced.3699

       Sec. 1707.19.  (A) An original license, or a renewal thereof,3700
applied for by a dealer or salesperson of securities, or by an 3701
investment adviser or an, investment adviser representative, or 3702
state retirement system investment officer, may be refused, and 3703
any such license granted may be suspended and, after notice and 3704
hearing in accordance with Chapter 119. of the Revised Code, may3705
be revoked, by the division of securities, if the division 3706
determines that the applicant or the licensed dealer, salesperson, 3707
investment adviser, or investment adviser representative, or state 3708
retirement system investment officer:3709

       (1) Is not of good business repute;3710

       (2) Is conducting an illegitimate or fraudulent business;3711

       (3) Is, in the case of a dealer or investment adviser,3712
insolvent;3713

       (4) Has knowingly violated any provision of sections 1707.01 3714
to 1707.45 of the Revised Code, or any regulation or order made 3715
thereunder;3716

       (5) Has knowingly made a false statement of a material fact3717
or an omission of a material fact in an application for a license,3718
in a description or application that has been filed, or in any3719
statement made to the division under such sections;3720

       (6) Has refused to comply with any lawful order or3721
requirement of the division under section 1707.23 of the Revised3722
Code;3723

       (7) Has been guilty of any fraudulent act in connection with3724
the sale of any securities or in connection with acting as an3725
investment adviser or, investment adviser representative, or state 3726
retirement system investment officer;3727

       (8) Conducts business in purchasing or selling securities at3728
such variations from the existing market as in the light of all3729
the circumstances are unconscionable;3730

       (9) Conducts business in violation of such rules and3731
regulations as the division prescribes for the protection of3732
investors, clients, or prospective clients, or state retirement 3733
systems;3734

       (10)(a) Has failed to furnish to the division any information3735
with respect to the purchases or sales of securities within this3736
state that may be reasonably requested by the division as 3737
pertinent to the protection of investors in this state.3738

       (b) Has failed to furnish to the division any information3739
with respect to acting as an investment adviser or an, investment3740
adviser representative, or state retirement system investment 3741
officer within this state that may be reasonably requested by the 3742
division.3743

       (B) For the protection of investors and state retirement 3744
systems the division may prescribe reasonable rules defining 3745
fraudulent, evasive, deceptive, or grossly unfair practices or 3746
devices in the purchase or sale of securities.3747

       (C) For the protection of investors, clients, or prospective3748
clients, or state retirement systems the division may prescribe 3749
reasonable rules regarding the acts and practices of an investment 3750
adviser or an, investment adviser representative, or state 3751
retirement system investment officer.3752

       (D) Pending any investigation or hearing provided for in3753
sections 1707.01 to 1707.45 of the Revised Code, the division may3754
order the suspension of any dealer's, salesperson's, investment3755
adviser's, or investment adviser representative's, or state 3756
retirement system investment officer's license by notifying the 3757
party concerned of such suspension and the cause for it. If it is 3758
a salesperson whose license is suspended, the division shall also 3759
notify the dealer employing the salesperson. If it is an 3760
investment adviser representative whose license is suspended, the 3761
division also shall notify the investment adviser with whom the 3762
investment adviser representative is employed or associated. If it 3763
is a state retirement system investment officer whose license is 3764
suspended, the division shall also notify the state retirement 3765
system with whom the state retirement system investment officer is 3766
employed.3767

       (E)(1) The suspension or revocation of the dealer's license3768
suspends the licenses of all the dealer's salespersons.3769

       (2) The suspension or revocation of the investment adviser's3770
license suspends the licenses of all the investment adviser's3771
investment adviser representatives. The suspension or revocation3772
of an investment adviser's registration under section 203 of the3773
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the3774
licenses of all the investment adviser's investment adviser3775
representatives.3776

       (F) It is sufficient cause for refusal, revocation, or3777
suspension of the license in case of a partnership, partnership3778
association, corporation, or unincorporated association if any3779
general partner of the partnership, manager of the partnership3780
association, or executive officer of the corporation or3781
unincorporated association is not of good business repute or has3782
been guilty of any act or omission which would be cause for3783
refusing or revoking the license of an individual dealer,3784
salesperson, investment adviser, or investment adviser3785
representative.3786

       Sec. 1707.20.  (A) The division of securities may adopt,3787
amend, and rescind such rules, forms, and orders as are necessary3788
to carry out sections 1707.01 to 1707.45 of the Revised Code,3789
including rules and forms governing registration statements,3790
applications, and reports, and defining any terms, whether or not3791
used in sections 1707.01 to 1707.45 of the Revised Code, insofar3792
as the definitions are not inconsistent with these sections. For3793
the purpose of rules and forms, the division may classify3794
securities, persons, and matters within its jurisdiction, and3795
prescribe different requirements for different classes.3796

       (B) No rule, form, or order may be made, amended, or3797
rescinded unless the division finds that the action is necessary3798
or appropriate in the public interest or for the protection of3799
investors, clients, or prospective clients, or state retirement 3800
systems and consistent with the purposes fairly intended by the 3801
policy and provisions of sections 1707.01 to 1707.45 of the 3802
Revised Code. In prescribing rules and forms and in otherwise 3803
administering sections 1707.01 to 1707.45 of the Revised Code, the 3804
division may cooperate with the securities administrators of the 3805
other states and the securities and exchange commission with a 3806
view of effectuating the policy of this section to achieve maximum 3807
uniformity in the form and content of registration statements, 3808
applications, reports, and overall securities regulation wherever 3809
practicable.3810

       (C) The division may by rule or order prescribe:3811

       (1) The form and content of financial statements required3812
under sections 1707.01 to 1707.45 of the Revised Code;3813

       (2) The circumstances under which consolidated financial3814
statements shall be filed;3815

       (3) Whether any required financial statements shall be3816
certified by independent or certified public accountants. All3817
financial statements shall be prepared in accordance with3818
generally accepted accounting practices.3819

       (D) All rules and forms of the division shall be published;3820
and in addition to fulfilling the requirements of Chapter 119. of3821
the Revised Code, the division shall prescribe, and shall publish3822
and make available its rules regarding the sale of securities, the3823
administration of sections 1707.01 to 1707.45 of the Revised Code,3824
and the procedure and practice before the division.3825

       (E) No provision of sections 1707.01 to 1707.45 of the3826
Revised Code imposing any liability applies to any act done or3827
omitted in good faith in conformity with any rule, form, or order3828
of the division of securities, notwithstanding that the rule,3829
form, or order may later be amended or rescinded or be determined3830
by judicial or other authority to be invalid for any reason,3831
except that the issuance of an order granting effectiveness to a3832
registration under section 1707.09 or 1707.091 of the Revised Code3833
for the purposes of this division shall not be deemed an order3834
other than as the establishment of the fact of registration.3835

       Sec. 1707.22.  Whenever a dealer's, salesperson's, investment 3836
adviser's, or investment adviser representative's, or state 3837
retirement system investment officer's license has been refused,3838
suspended, or revoked, or a renewal thereof has been denied, by 3839
the division of securities, or whenever the division has refused 3840
to qualify securities or has suspended or revoked the registration 3841
of any particular security by description or by qualification, or 3842
the right to buy, sell, or deal in any particular security whether 3843
it is registered or qualified or exempt, or whether the 3844
transactions in it are registered or exempt, the aggrieved party3845
may appeal in accordance with Chapter 119. of the Revised Code.3846

       An order sustaining the refusal of the division to grant or 3847
renew a dealer's, salesperson's, investment adviser's, or3848
investment adviser representative's, or state retirement system 3849
investment officer's license or to grant qualification of3850
securities, or an order sustaining the division in suspending or 3851
revoking a dealer's, salesperson's, investment adviser's, or3852
investment adviser representative's, or state retirement system 3853
investment officer's license, the registration of any particular 3854
security by description or by qualification, or the right to buy, 3855
sell, or deal in any particular security, shall not bar, after ten 3856
days from the order, a new registration by description, or a new3857
application of the plaintiff for such a license or qualification 3858
or for a withdrawal of a revocation or suspension; nor shall an 3859
order in favor of the plaintiff prevent the division, after proper 3860
notice and hearing, from thereafter revoking or suspending such 3861
license, registration, or right to buy, sell, or deal in a 3862
particular security, for any proper cause which may, after the 3863
order, accrue or be discovered.3864

       Sec. 1707.23.  Whenever it appears to the division of3865
securities, from its files, upon complaint, or otherwise, that any3866
person has engaged in, is engaged in, or is about to engage in any3867
practice declared to be illegal or prohibited by this chapter or3868
rules adopted under this chapter by the division, or defined as3869
fraudulent in this chapter or rules adopted under this chapter by 3870
the division, or any other deceptive scheme or practice in3871
connection with the sale of securities, or acting as a dealer, a 3872
salesperson, an investment adviser or, investment adviser 3873
representative, or state retirement system investment officer or 3874
when the division believes it to be in the best interests of the 3875
public and necessary for the protection of investors, the division 3876
may do any of the following:3877

       (A) Require any person to file with it, on such forms as it3878
prescribes, an original or additional statement or report in3879
writing, under oath or otherwise, as to any facts or circumstances3880
concerning the issuance, sale, or offer for sale of securities3881
within this state by the person, as to the person's acts or3882
practices as a dealer, a salesperson, an investment adviser or,3883
investment adviser representative, or state retirement system 3884
investment officer within this state, and as to other information 3885
as it deems material or relevant thereto;3886

       (B) Examine any investment adviser, investment adviser3887
representative, state retirement system investment officer, or any3888
seller, dealer, salesperson, or issuer of any securities, and any 3889
of their agents, employees, partners, officers, directors, 3890
members, or shareholders, wherever located, under oath; and 3891
examine and produce records, books, documents, accounts, and3892
papers as the division deems material or relevant to the inquiry;3893

       (C) Require the attendance of witnesses, and the production3894
of books, records, and papers, as are required either by the3895
division or by any party to a hearing before the division, and for3896
that purpose issue a subpoena for any witness, or a subpoena duces3897
tecum to compel the production of any books, records, or papers.3898
The subpoena shall be served by personal service or by certified3899
mail, return receipt requested. If the subpoena is returned3900
because of inability to deliver, or if no return is received3901
within thirty days of the date of mailing, the subpoena may be3902
served by ordinary mail. If no return of ordinary mail is received 3903
within thirty days after the date of mailing, service shall be 3904
deemed to have been made. If the subpoena is returned because of 3905
inability to deliver, the division may designate a person or 3906
persons to effect either personal or residence service upon the 3907
witness. The person designated to effect personal or residence3908
service under this division may be the sheriff of the county in 3909
which the witness resides or may be found or any other duly3910
designated person. The fees and mileage of the person serving the 3911
subpoena shall be the same as those allowed by the courts of3912
common pleas in criminal cases, and shall be paid from the funds3913
of the division. Fees and mileage for the witness shall be the3914
same as those allowed for witnesses by the courts of common pleas3915
in criminal cases, and shall be paid from the funds of the3916
division upon request of the witness following the hearing.3917

       (D) Proceed under section 1707.19 of the Revised Code to3918
refuse a license applied for by a dealer, salesperson, investment3919
adviser, or investment adviser representative or to suspend the3920
license of any licensed dealer, licensed salesperson, licensed3921
investment adviser, or licensed investment adviser representative3922
and ultimately, if the division determines, revoke such license3923
under that section;3924

       (E) Initiate criminal proceedings under section 1707.042 or3925
1707.44 of the Revised Code or rules adopted under those sections3926
by the division by laying before the prosecuting attorney of the3927
proper county any evidence of criminality which comes to its3928
knowledge; and in the event of the neglect or refusal of the3929
prosecuting attorney to prosecute such violations, or at the3930
request of the prosecuting attorney, the division shall submit the3931
evidence to the attorney general, who may proceed in the3932
prosecution with all the rights, privileges, and powers conferred3933
by law on prosecuting attorneys, including the power to appear3934
before grand juries and to interrogate witnesses before such grand3935
juries.3936

       (F)(E) Require any dealers immediately to furnish to the3937
division copies of prospectuses, circulars, or advertisements3938
respecting securities that they publish or generally distribute,3939
or require any investment advisers immediately to furnish to the3940
division copies of brochures, advertisements, publications,3941
analyses, reports, or other writings that they publish or3942
distribute;3943

       (G)(F) Require any dealers to mail to the division, prior to3944
sale, notices of intention to sell, in respect to all securities3945
which are not exempt under section 1707.02 of the Revised Code, or3946
which are sold in transactions not exempt under section 1707.03 or3947
1707.04 of the Revised Code;3948

       (H)(G) Issue and cause to be served by certified mail upon3949
all persons affected an order requiring the person or persons to3950
cease and desist from the acts or practices appearing to the3951
division to constitute violations of this chapter or rules adopted 3952
under this chapter by the division. The order shall state 3953
specifically the section or sections of this chapter or the rule 3954
or rules adopted under this chapter by the division that appear to 3955
the division to have been violated and the facts constituting the3956
violation. If after the issuance of the order it appears to the3957
division that any person or persons affected by the order have3958
engaged in any act or practice from which the person or persons3959
shall have been required, by the order, to cease and desist, the3960
director of commerce may apply to the court of common pleas of any3961
county for, and upon proof of the validity of the order of the3962
division, the delivery of the order to the person or persons3963
affected, and of the illegality and the continuation of the acts3964
or practices that are the subject of the order, the court may3965
grant an injunction implementing the order of the division.3966

       (I)(H) Issue and initiate contempt proceedings in this state3967
regarding subpoenas and subpoenas duces tecum at the request of3968
the securities administrator of another state, if it appears to3969
the division that the activities for which the information is3970
sought would violate this chapter if the activities had occurred3971
in this state.3972

       (J)(I) The remedies provided by this section are cumulative 3973
and concurrent with any other remedy provided in this chapter, and 3974
the exercise of one remedy does not preclude or require the 3975
exercise of any other remedy.3976

       Sec. 1707.25.  In case any person fails to file any statement 3977
or report required by sections 1707.01 to 1707.45 of the Revised 3978
Code, to obey any subpoena the issuance of which is provided for 3979
in those sections, or to produce books, records, or papers, give 3980
testimony, or answer questions, as required by those sections, the 3981
director of commerce may apply to a court of common pleas of any 3982
county for, and upon proof of such failure the court may grant, an 3983
injunction restraining the acting as an investment adviser or,3984
investment adviser representative, or state retirement system 3985
investment officer, or the issuance, sale, or offer for sale of 3986
any securities by the person or by its agents, employees, 3987
partners, officers, directors, or shareholders, until such failure 3988
has been remedied and other relief as the facts may warrant has 3989
been had. Such injunctive relief is available in addition to the 3990
other remedies provided for in sections 1707.01 to 1707.45 of the 3991
Revised Code.3992

       Where the person refusing to comply with such order of court 3993
is an issuer of securities, the court may enjoin the sale by any 3994
dealer of any securities of the issuer, and the division of 3995
securities may revoke the qualification of the securities of the 3996
issuer, or suspend or revoke the sale of any securities of the 3997
issuer which have been registered by description, and such 3998
securities shall not thereafter be sold by any dealer until the 3999
order of the court or of the division is withdrawn.4000

       Sec. 1707.261.  (A) If a court of common pleas grants an 4001
injunction pursuant to section 1707.26 of the Revised Code, after 4002
consultation with the attorney general the director of commerce 4003
may request that court to order the defendant or defendants that 4004
are subject to the injunction to make restitution or rescission to 4005
any purchaser or holder of securities damaged by the defendant's 4006
or defendants' violation of any provision of sections 1707.01 to 4007
1707.45 of the Revised Code.4008

       (B) If the court of common pleas is satisfied with the 4009
sufficiency of the director's request for restitution or 4010
rescission under division (A) of this section and with the 4011
sufficiency of the proof of a substantial violation of any 4012
provision of sections 1707.01 to 1707.45 of the Revised Code, or 4013
of the use of any act, practice, or transaction declared to be 4014
illegal or prohibited or defined as fraudulent by those sections 4015
or rules adopted under those sections by the division of 4016
securities, to the material prejudice of a purchaser or holder of 4017
securities, the court may order the defendant or defendants 4018
subject to the injunction to make restitution or rescission to any 4019
purchaser or holder of securities damaged by the defendant's or 4020
defendants' violation of sections 1707.01 to 1707.45 of the 4021
Revised Code.4022

       (C) A court order granting restitution or rescission based 4023
upon a request made pursuant to division (A) of this section shall 4024
meet the requirements of division (B) of this section and may not 4025
be based solely upon a final order issued by the division of 4026
securities pursuant to Chapter 119. of the Revised Code or upon an 4027
action to enforce a final order issued by the division pursuant to 4028
that chapter. Notwithstanding the foregoing provision, a request 4029
for restitution or rescission pursuant to division (A) of this 4030
section may concern the same acts, practices, or transactions that 4031
were, or may later be, the subject of a division of securities 4032
action for a violation of any provision of sections 1707.01 to 4033
1707.45 of the Revised Code. If a request for restitution or 4034
rescission pursuant to division (A) of this section concerns the 4035
same acts, practices, or transactions that were the subject of a 4036
final order issued by the division of securities pursuant to 4037
Chapter 119. of the Revised Code, the court shall review the 4038
request in accordance with division (B) of this section, and the 4039
standard of review in section 119.12 of the Revised Code shall not 4040
apply to the request.4041

       (D) No purchaser or holder of securities who is entitled to 4042
restitution or rescission under this section shall recover, 4043
pursuant to this section or any other proceeding, a total amount 4044
in excess of the person's purchase price for the securities sold 4045
in violation of sections 1707.01 to 1707.45 of the Revised Code.4046

       (E)(1) If a court of common pleas grants an injunction 4047
pursuant to section 1707.26 of the Revised Code against any state 4048
retirement system investment officer, after consultation with the 4049
attorney general, the director of commerce may request that court 4050
to order the state retirement system investment officer or 4051
officers that are subject to the injunction to make restitution to 4052
the state retirement system damaged by the state retirement system 4053
investment officer's or officers' violation of any provision of 4054
sections 1707.01 to 1707.45 of the Revised Code.4055

       (2) If the court of common pleas is satisfied with the 4056
sufficiency of the director's request for restitution under 4057
division (E)(1) of this section and with the sufficiency of the 4058
proof of a substantial violation of any provision of sections 4059
1707.01 to 1707.45 of the Revised Code, or of the use of any act, 4060
practice, or transaction declared to be illegal or prohibited or 4061
defined as fraudulent by those sections or rules adopted under 4062
those sections by the division of securities, to the material 4063
prejudice of a state retirement system, the court may order the 4064
state retirement system investment officer or officers subject to 4065
the injunction to make restitution to the state retirement system 4066
damaged by the state retirement system investment officer's or 4067
officers' violation of sections 1707.01 to 1707.45 of the Revised 4068
Code. A request for restitution pursuant to division (E)(1) of 4069
this section may concern the same acts, practices, or transactions 4070
that were, or may later be, the subject of a division of 4071
securities action for a violation of any provision of section 4072
1707.01 to 1707.45 of the Revised Code.4073

       Sec. 1707.39.  When any securities have been sold without4074
compliance with sections 1707.01 to 1707.45 of the Revised Code,4075
or any former law in force at the time of such sale, any4076
interested person may apply in writing to the division of4077
securities for the qualification of such securities under such4078
sections. If it appears to the division that no person has been4079
defrauded, prejudiced, or damaged by such noncompliance or sale4080
and that no person will be defrauded, prejudiced, or damaged by4081
such qualification, the division may permit such securities to be4082
so qualified upon the payment of a fee of one hundred dollars plus 4083
a fee of one-fifth of one per cent of the aggregate price at which 4084
the securities have been sold in this state, which fee shall in no 4085
case be less than one hundred dollars nor more than two thousand 4086
dollars. In addition, the division may require the applicant to 4087
advance sufficient funds to pay the actual expenses of an 4088
examination or investigation by the division, whether to be4089
conducted in this state or outside this state. An itemized4090
statement of such expenses shall be furnished to the applicant.4091

       Such qualification shall estop the division from proceeding4092
under division (E)(D) of section 1707.23 of the Revised Code 4093
against anyone who has violated division (C)(1) of section 1707.44 4094
of the Revised Code for acts within the scope of the application, 4095
or from proceeding with administrative action pursuant to section4096
1707.13 of the Revised Code.4097

       Sec. 1707.431.  For purposes of this section, the following4098
persons shall not be deemed to have effected, participated in, or4099
aided the seller in any way in making, a sale or contract of sale4100
in violation of sections 1707.01 to 1707.45 of the Revised Code:4101

       (A) Any attorney, accountant, or engineer whose performance 4102
is incidental to the practice of the person's profession;4103

       (B) Any person, other than an investment adviser or an,4104
investment adviser representative, or state retirement system 4105
investment officer, who brings any issuer together with any4106
potential investor, without receiving, directly or indirectly, a4107
commission, fee, or other remuneration based on the sale of any4108
securities by the issuer to the investor. Remuneration received by 4109
the person solely for the purpose of offsetting the reasonable 4110
out-of-pocket costs incurred by the person shall not be deemed a 4111
commission, fee, or other remuneration.4112

       Any person claiming exemption under this division for a4113
publicly advertised meeting shall file a notice with the division4114
of securities indicating an intent to cause or hold such a meeting 4115
at least twenty-one days prior to the meeting. The division may, 4116
upon receipt of such notice, issue an order denying the 4117
availability of an exemption under this division not more than 4118
fourteen days after receipt of the notice based on a finding that 4119
the applicant is not entitled to the exemption. Notwithstanding 4120
the notice described in this section, a failure to file the notice 4121
does not create a presumption that a person was participating in 4122
or aiding in the making of a sale or contract of sale in violation 4123
of this chapter.4124

       (C) Any person whom the division exempts from this provision 4125
by rule.4126

       Sec. 1707.44.  (A)(1) No person shall engage in any act or4127
practice that violates division (A), (B), or (C) of section4128
1707.14 of the Revised Code, and no salesperson shall sell4129
securities in this state without being licensed pursuant to4130
section 1707.16 of the Revised Code.4131

       (2) No person shall engage in any act or practice that4132
violates division (A) of section 1707.141 or section 1707.161 of4133
the Revised Code.4134

       (3) No person shall engage in any act or practice that 4135
violates section 1707.162 of the Revised Code.4136

       (B) No person shall knowingly make or cause to be made any4137
false representation concerning a material and relevant fact, in4138
any oral statement or in any prospectus, circular, description,4139
application, or written statement, for any of the following4140
purposes:4141

       (1) Registering securities or transactions, or exempting4142
securities or transactions from registration, under this chapter;4143

       (2) Securing the qualification of any securities under this4144
chapter;4145

       (3) Procuring the licensing of any dealer, salesperson,4146
investment adviser, or investment adviser representative, or state 4147
retirement system investment officer under this chapter;4148

       (4) Selling any securities in this state;4149

       (5) Advising for compensation, as to the value of securities4150
or as to the advisability of investing in, purchasing, or selling4151
securities;4152

       (6) Submitting a notice filing to the division under division 4153
(X) of section 1707.03 or section 1707.092 or 1707.141 of the 4154
Revised Code.4155

       (C) No person shall knowingly sell, cause to be sold, offer4156
for sale, or cause to be offered for sale, any security which4157
comes under any of the following descriptions:4158

       (1) Is not exempt under section 1707.02 of the Revised Code,4159
nor the subject matter of one of the transactions exempted in4160
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not4161
been registered by coordination or qualification, and is not the4162
subject matter of a transaction that has been registered by4163
description;4164

       (2) The prescribed fees for registering by description, by4165
coordination, or by qualification have not been paid in respect to4166
such security;4167

       (3) The person has been notified by the division, or has4168
knowledge of the notice, that the right to buy, sell, or deal in4169
such security has been suspended or revoked, or that the4170
registration by description, by coordination, or by qualification4171
under which it may be sold has been suspended or revoked;4172

       (4) The offer or sale is accompanied by a statement that the4173
security offered or sold has been or is to be in any manner4174
indorsed by the division.4175

       (D) No person who is an officer, director, or trustee of, or4176
a dealer for, any issuer, and who knows such issuer to be4177
insolvent in that the liabilities of the issuer exceed its assets,4178
shall sell any securities of or for any such issuer, without4179
disclosing the fact of the insolvency to the purchaser.4180

       (E) No person with intent to aid in the sale of any4181
securities on behalf of the issuer, shall knowingly make any4182
representation not authorized by such issuer or at material4183
variance with statements and documents filed with the division by4184
such issuer.4185

       (F) No person, with intent to deceive, shall sell, cause to4186
be sold, offer for sale, or cause to be offered for sale, any4187
securities of an insolvent issuer, with knowledge that such issuer4188
is insolvent in that the liabilities of the issuer exceed its4189
assets, taken at their fair market value.4190

       (G) No person in purchasing or selling securities shall4191
knowingly engage in any act or practice that is, in this chapter,4192
declared illegal, defined as fraudulent, or prohibited.4193

       (H) No licensed dealer shall refuse to buy from, sell to, or4194
trade with any person because the person appears on a blacklist4195
issued by, or is being boycotted by, any foreign corporate or4196
governmental entity, nor sell any securities of or for any issuer4197
who is known in relation to the issuance or sale of the securities 4198
to have engaged in such practices.4199

       (I) No dealer in securities, knowing that the dealer's4200
liabilities exceed the reasonable value of the dealer's assets,4201
shall accept money or securities, except in payment of or as4202
security for an existing debt, from a customer who is ignorant of4203
the dealer's insolvency, and thereby cause the customer to lose4204
any part of the customer's securities or the value of those4205
securities, by doing either of the following without the4206
customer's consent:4207

       (1) Pledging, selling, or otherwise disposing of such4208
securities, when the dealer has no lien on or any special property4209
in such securities;4210

       (2) Pledging such securities for more than the amount due, or 4211
otherwise disposing of such securities for the dealer's own4212
benefit, when the dealer has a lien or indebtedness on such4213
securities.4214

       It is an affirmative defense to a charge under this division4215
that, at the time the securities involved were pledged, sold, or4216
disposed of, the dealer had in the dealer's possession or control,4217
and available for delivery, securities of the same kinds and in4218
amounts sufficient to satisfy all customers entitled to the4219
securities, upon demand and tender of any amount due on the4220
securities.4221

       (J) No person, with purpose to deceive, shall make, issue,4222
publish, or cause to be made, issued, or published any statement4223
or advertisement as to the value of securities, or as to alleged4224
facts affecting the value of securities, or as to the financial4225
condition of any issuer of securities, when the person knows that4226
such statement or advertisement is false in any material respect.4227

       (K) No person, with purpose to deceive, shall make, record,4228
or publish or cause to be made, recorded, or published, a report4229
of any transaction in securities which is false in any material4230
respect.4231

       (L) No dealer shall engage in any act that violates the4232
provisions of section 15(c) or 15(g) of the "Securities Exchange4233
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule4234
or regulation promulgated by the securities and exchange4235
commission thereunder. If, subsequent to October 11, 1994,4236
additional amendments to section 15(c) or 15(g) are adopted, or4237
additional rules or regulations are promulgated pursuant to such4238
sections, the division of securities shall, by rule, adopt the4239
amendments, rules, or regulations, unless the division finds that4240
the amendments, rules, or regulations are not necessary for the4241
protection of investors or in the public interest.4242

       (M)(1) No investment adviser or investment adviser4243
representative shall do any of the following:4244

       (a) Employ any device, scheme, or artifice to defraud any4245
person;4246

       (b) Engage in any act, practice, or course of business that4247
operates or would operate as a fraud or deceit upon any person;4248

       (c) In acting as principal for the investment adviser's or4249
investment adviser representative's own account, knowingly sell4250
any security to or purchase any security from a client, or in4251
acting as salesperson for a person other than such client,4252
knowingly effect any sale or purchase of any security for the4253
account of such client, without disclosing to the client in4254
writing before the completion of the transaction the capacity in4255
which the investment adviser or investment adviser representative4256
is acting and obtaining the consent of the client to the4257
transaction. Division (M)(1)(c) of this section does not apply to4258
any investment adviser registered with the securities and exchange4259
commission under section 203 of the "Investment Advisers Act of4260
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a4261
licensed dealer or salesperson if the licensed dealer or4262
salesperson is not acting as an investment adviser or investment4263
adviser representative in relation to the transaction.4264

       (d) Engage in any act, practice, or course of business that4265
is fraudulent, deceptive, or manipulative. The division of4266
securities may adopt rules reasonably designed to prevent such4267
acts, practices, or courses of business that are fraudulent,4268
deceptive, or manipulative.4269

       (2) No investment adviser or investment adviser4270
representative licensed or required to be licensed under this4271
chapter shall take or have custody of any securities or funds of4272
any person, except as provided in rules adopted by the division.4273

       (3) In the solicitation of clients or prospective clients, no4274
person shall make any untrue statement of a material fact or omit 4275
to state a material fact necessary in order to make the statements 4276
made not misleading in light of the circumstances under which the 4277
statements were made.4278

       (N) No person knowingly shall influence, coerce, manipulate,4279
or mislead any person engaged in the preparation, compilation,4280
review, or audit of financial statements to be used in the4281
purchase or sale of securities for the purpose of rendering the4282
financial statements materially misleading.4283

       (O) No state retirement system investment officer shall do 4284
any of the following:4285

        (1) Employ any device, scheme, or artifice to defraud any 4286
state retirement system;4287

        (2) Engage in any act, practice, or course of business that 4288
operates or would operate as a fraud or deceit on any state 4289
retirement system;4290

        (3) Engage in any act, practice, or course of business that 4291
is fraudulent, deceptive, or manipulative. The division of 4292
securities may adopt rules reasonably designed to prevent such 4293
acts, practices, or courses of business as are fraudulent, 4294
deceptive, or manipulative.4295

       Sec. 1707.46.  The principal executive officer of the 4296
division of securities shall be the commissioner of securities, 4297
who shall be appointed by the director of commerce. The 4298
commissioner of securities shall enforce all the laws and 4299
administrative rules enacted or adopted to regulate the sale of 4300
bonds, stocks, and other securities and to prevent fraud in such 4301
sales. The commissioner also shall enforce all the laws and 4302
administrative rules enacted or adopted to regulate investment 4303
advisers and, investment adviser representatives, and state 4304
retirement system investment officers and to prevent fraud in 4305
their acts, practices, and transactions.4306

       The commissioner shall be paid at a rate not less than pay 4307
range 47 set out in schedule E-2 of section 124.152 of the Revised 4308
Code, to be paid as other operating expenses of the division.4309

       Sec. 3307.03.  A state teachers retirement system is hereby 4310
established for the teachers of the public schools of the state 4311
which includes the several funds created and placed under the 4312
management of a state teachers retirement board for the payment of 4313
retirement allowances and other benefits under Chapter 3307. of 4314
the Revised Code. The board may sue and be sued, plead and be4315
impleaded, contract and be contracted with, and do all things 4316
necessary to carry out such sections. All of its business shall be 4317
transacted, and all of its funds invested, all warrants for money 4318
drawn and payments made, and all of its cash, securities, and 4319
other property shall be held in the name of the board or in the 4320
name of its nominee, provided that nominees are authorized by4321
retirement board resolution for the purpose of facilitating the 4322
ownership and transfer of investments and are restricted to 4323
members of the board, the executive director, and designated 4324
members of the staff, or a partnership or corporation composed of 4325
any of the foregoing persons.4326

       If the Ohio retirement study council establishes a uniform 4327
format for any report the board is required to submit to the 4328
council, the board shall submit the report in that format.4329

       Sec. 3307.041. The state teachers retirement board shall do 4330
all of the following:4331

        (A) In consultation with the Ohio ethics commission, review 4332
any existing policy regarding the travel and payment of travel 4333
expenses of members and employees of the state teachers retirement 4334
board and adopt rules in accordance with section 3307.04 of the 4335
Revised Code establishing a new or revised policy regarding travel 4336
and payment of travel expenses;4337

        (B) If the board intends to award a bonus to any employee of 4338
the board, adopt rules in accordance with section 3307.04 of the 4339
Revised Code establishing a policy regarding employee bonuses;4340

        (C) Provide copies of the rules adopted under divisions (A) 4341
and (B) of this section to each member of the Ohio retirement 4342
study council;4343

       (D) Submit to the Ohio retirement study council a proposed 4344
operating budget, including a travel budget, for the next 4345
immediate fiscal year and adopt that budget not earlier than sixty 4346
days after it is submitted to the council.4347

       Sec. 3307.042. The state teachers retirement board shall, in 4348
consultation with the Ohio ethics commission, develop an ethics 4349
policy. The board shall submit this policy to the Ohio retirement 4350
study council for approval.4351

        The council shall review the policy in consultation with the 4352
Ohio ethics commission and, if the council determines that the 4353
policy is adequate, approve the policy. If the council determines 4354
that the policy is inadequate, it shall specify the revisions to 4355
be made and the board shall submit a revised policy. If the 4356
council approves the revised policy, the board shall adopt it. If 4357
not, the board shall make any further revisions required by the 4358
council and adopt the policy.4359

       The board periodically shall provide ethics training to 4360
members and employees of the board. The training shall include 4361
training regarding the requirements and prohibitions of Chapter 4362
102. of the Revised Code and sections 2921.42 and 2921.43 of the 4363
Revised Code and any other training the board considers 4364
appropriate.4365

        The board shall establish a procedure to ensure that each 4366
employee of the board is informed of the procedure for filing a 4367
complaint alleging violation of Chapter 102. of the Revised Code 4368
or section 2921.42 or 2921.43 of the Revised Code with the Ohio 4369
ethics commission or the appropriate prosecuting attorney.4370

       Sec. 3307.043.  (A) The state teachers retirement board shall 4371
designate a person who is a licensed state retirement system 4372
investment officer to be the chief investment officer for the 4373
state teachers retirement system. The board shall notify the 4374
division of securities of the department of commerce in writing of 4375
its designation and of any change in its designation within ten 4376
calendar days of the designation or change.4377

       (B) The chief investment officer shall reasonably supervise 4378
the licensed state retirement system investment officers and other 4379
persons employed by the state teachers retirement system with a 4380
view toward preventing violations of Chapter 1707. of the Revised 4381
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and 4382
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 4383
and following, and the "Securities Exchange Act of 1934," 48 Stat. 4384
881, 15 U.S.C. 78a, and following, and the rules and regulations 4385
promulgated under those statutes. This duty of reasonable 4386
supervision shall include the adoption, implementation, and 4387
enforcement of written policies and procedures reasonably designed 4388
to prevent persons employed by the state teachers retirement 4389
system from misusing material, nonpublic information in violation 4390
of those laws, rules, and regulations.4391

       For purposes of this division, no chief investment officer 4392
shall be considered to have failed to satisfy the officer's duty 4393
of reasonable supervision if the officer has done all of the 4394
following:4395

       (1) Adopted and implemented written procedures, and a system 4396
for applying the procedures, that would reasonably be expected to 4397
prevent and detect, insofar as practicable, any violation by its 4398
licensed investment officers and other persons employed by the 4399
state teachers retirement system;4400

       (2) Reasonably discharged the duties and obligations 4401
incumbent on the chief investment officer by reason of the 4402
established procedures and the system for applying the procedures 4403
when the officer had no reasonable cause to believe that there was 4404
a failure to comply with the procedures and systems;4405

       (3) Reviewed, at least annually, the adequacy of the policies 4406
and procedures established pursuant to this section and the 4407
effectiveness of their implementation.4408

       (C) The chief investment officer shall ensure that securities 4409
transactions are executed in such a manner that the state teachers 4410
retirement system's total costs or proceeds in each transaction 4411
are the most favorable under the circumstances. 4412

       For purposes of this division, no chief investment officer 4413
shall be considered to have failed to satisfy the officer's duty 4414
of best execution if the officer has done both of the following:4415

       (1) Adopted and implemented a written policy that outlines 4416
the criteria used to select broker-dealers that execute securities 4417
transactions on behalf of the state teachers retirement system, 4418
which criteria shall include all of the following:4419

       (a) Commissions charged by the broker-dealer, both in the 4420
aggregate and on a per share basis;4421

       (b) The execution speed and trade settlement capabilities of 4422
the broker-dealer;4423

       (c) The responsiveness, reliability, and integrity of the 4424
broker-dealer;4425

       (d) The nature and value of research provided by the 4426
broker-dealer; 4427

       (e) Any special capabilities of the broker-dealer.4428

       (2) Reviewed, at least annually, the performance of 4429
broker-dealers that execute securities transactions on behalf of 4430
the state teachers retirement system. 4431

       Sec. 3307.05.  The state teachers retirement board shall4432
consist of the following nine members:4433

       (A) The superintendent of public instruction;4434

       (B) The auditor of state;4435

       (C) The attorney generaltreasurer of state;4436

       (D) Five members, known as teacher members, who shall be4437
members of the state teachers retirement system;4438

       (E) ATwo former membermembers of the system, known as the4439
retired teacher membermembers, who shall be a superannuate and4440
superannuates who isare not otherwise employed in a position4441
positions requiring the retired teacher memberthem to make 4442
contributions to the system;4443

       (F) One member, known as the school board member, who shall 4444
be a member of a city, local, exempted village, or joint 4445
vocational school board district board of education or a member of 4446
an educational service center governing board, but need not be a 4447
member of the retirement system.4448

       Sec. 3307.051. Each newly elected member of the state 4449
teachers retirement board and each individual appointed to fill a 4450
vacancy on the board, shall, not later than ninety days after 4451
commencing service as a board member, complete the orientation 4452
program component of the retirement board member education program 4453
established under section 171.50 of the Revised Code.4454

       Each member of the board who has served a year or longer as a 4455
board member shall, not less than twice each year, attend one or 4456
more programs that are part of the continuing education component 4457
of the retirement board member education program established under 4458
section 171.50 of the Revised Code.4459

       Sec. 3307.06.  (A) Annually on the first Monday of May, one4460
teacher member, as defined in division (D) of section 3307.05 of4461
the Revised Code, shall be elected by ballot to the state teachers 4462
retirement board, except that, beginning with the annual election 4463
for teacher members in May, 1978, and in the annual election of 4464
each fourth year thereafter, two teacher members shall be elected 4465
to the board. Elected teacher members shall begin their respective 4466
terms of office on the first day of September following their 4467
election and shall serve for a term of four years.4468

       (B) The retired teacher membermembers of the board, as 4469
defined in division (E) of section 3307.05 of the Revised Code, 4470
shall be elected for a term of four years, except that the initial 4471
retired teacher member shall be elected for a term of three years. 4472
The retired teacher membermembers shall be elected to the board 4473
at the annual election for teacher members of the board, as 4474
provided in division (A) of this section, in the year in which the 4475
term of the current retired teacher membermembers would expire. 4476
The retired teacher membermembers shall begin his termtheir 4477
respective terms of office on the first day of September following 4478
histheir election.4479

       No teacher member of the board who retires while a member of 4480
the board shall be eligible to become a retired teacher member of 4481
the board for three years after the date of the member's4482
retirement.4483

       (C) The school board member of the board, as defined in 4484
division (F) of section 3307.05 of the Revised Code, shall be 4485
elected by ballot for a term of four years at the annual election 4486
for teacher members of the board, as provided in division (A) of 4487
this section. The school board member of the board shall be 4488
elected by school board members regardless of whether they are 4489
members of the retirement system.4490

       The initial school board member shall be elected to the board 4491
at the first annual election for teacher members of the board that 4492
occurs not less than ninety days after the effective date of this 4493
amendment. Thereafter, the school board member shall be elected to 4494
the board at the annual election in the year in which the term of 4495
the current school board member would expire. The school board 4496
member's term of office shall begin on the first day of September 4497
following the member's election.4498

       (D) If a vacancy occurs during the term of office of any4499
elected member of the board, the remaining members of the board4500
shall elect a successor member who. On certification of the 4501
election results under section 111.30 of the Revised Code the 4502
successor member shall hold office for the remainder of his 4503
predecessor's termuntil the next board election that occurs not 4504
less than ninety days after the successor member's election. The 4505
successor member shall qualify for board membership under the same 4506
division of section 3307.05 of the Revised Code as histhe 4507
member's predecessor in office. Elections under this division 4508
shall be conducted under the supervision of the secretary of state 4509
pursuant to section 111.30 of the Revised Code.4510

       (D)(E) If as a result of changed circumstances an elected4511
member of the board would no longer qualify for board membership4512
under that division of section 3307.05 of the Revised Code on the4513
basis of which hethe member was elected, or if such a member4514
fails to attend the meetings of the board for four months or 4515
longer, without being excused, histhe member's position on the 4516
board shall be considered vacant, and a successor member shall be 4517
chosenelected, under division (C)(D) of this section, for the 4518
remainder of histhe unexpired term.4519

       Sec. 3307.061. A teacher member or retired teacher member of 4520
the state teachers retirement board who is charged with committing 4521
a felony, a theft offense as defined in section 2913.01 of the 4522
Revised Code, or a violation of section 102.02, 102.03, 102.04, 4523
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 4524
2921.44 of the Revised Code shall be suspended from participation 4525
on the board for the period during which the charges are pending. 4526
If the charges are dismissed, the member is found not guilty, or 4527
the charges are otherwise resolved in a manner not resulting in 4528
the member being convicted of or pleading guilty to an offense of 4529
that nature, the suspension shall end, and the member may 4530
participate on the board. If the member pleads guilty to or is 4531
convicted of the offense, the position of the member on the board 4532
shall be deemed vacant. A person who has pleaded guilty to or been 4533
convicted of an offense of that nature is ineligible for election 4534
to the office of teacher or retired teacher member of the state 4535
teachers retirement board.4536

       The Ohio retirement study council may hold a hearing to 4537
determine whether to remove a teacher member or retired teacher 4538
member of the state teachers retirement board who has been 4539
suspended pursuant to this section. If it decides to hold a 4540
hearing, the council shall provide the suspended board member at 4541
least seven days prior notice of the time, date, and place of the 4542
hearing. The suspended board member may be represented by an 4543
attorney. At the hearing the suspended board member, or the 4544
suspended board member's attorney, shall have an opportunity to 4545
present evidence, call witnesses, and cross-examine witnesses. The 4546
hearing shall be open to the public. At the conclusion of the 4547
hearing, if the voting members of the council unanimously vote to 4548
remove the suspended board member, the suspended board member 4549
shall be removed from the board, and the position of the member 4550
shall be deemed vacant.4551

       Sec. 3307.07.  All elections of members of the state teachers 4552
retirement board shall be held under the direction of the board in 4553
accordance with rules adopted under section 111.30 of the Revised 4554
Code. Any member of the state teachers retirement system, who has 4555
been nominated by a petition that is signed by five hundred or4556
more members of the system and certified under section 111.30 of 4557
the Revised Code, shall be eligible for election as a teacher 4558
member of the board. The petition shall contain the signatures of 4559
twenty or more members of the system from each of at least ten 4560
counties wherein members of the system are employed.4561

       Any retired teacher who is a superannuate and a resident of4562
Ohio is eligible for election as thea retired teacher member of 4563
the board, if such retired teacher has been nominated by a 4564
petition that is signed by five hundred or more retired teachers, 4565
who are also superannuates, and certified under section 111.30 of 4566
the Revised Code. The petition shall contain the signatures of 4567
twenty or more retired teachers from each of at least ten counties 4568
wherein superannuates under the system reside.4569

       The board shall place the name of any eligible candidate upon 4570
the appropriate ballot as a regular candidate. At any election, 4571
qualified voters, as defined in this section, may vote for the 4572
regular candidates or for other eligible candidates, in which case 4573
the names of such persons shall be written upon the appropriate 4574
ballots, except that members of the system and former members of 4575
the system who are superannuates shall vote respectively for 4576
teacher members and the retired teacher membermembers of the 4577
board. The candidate who receives the highest number of votes for 4578
any term of office shall be elected to the board on certification 4579
of the election results under section 111.30 of the Revised Code. 4580
If, at any election, teacher members or retired teacher members4581
are to be elected for concurrent terms, eligible candidates shall 4582
be placed on the ballot, and the candidates who receive the 4583
highest numbers of votes shall be elected to the board on 4584
certification of the election results under section 111.30 of the 4585
Revised Code.4586

       Elected members of the board shall be elected on the basis of 4587
the total number of ballots cast by qualified voters, who shall 4588
consist of members of the system and former members of the system 4589
who are superannuates.4590

       Sec. 3307.072. (A) As used in this section:4591

        (1) "Campaign committee" means a candidate or a combination 4592
of two or more persons authorized by a candidate to receive 4593
contributions and in-kind contributions and make expenditures on 4594
behalf of the candidate.4595

        (2) "Candidate" means an individual who has been nominated 4596
pursuant to section 3307.07 of the Revised Code for election to 4597
the state teachers retirement board.4598

        (3) "Contribution" means a loan, gift, deposit, forgiveness 4599
of indebtedness, donation, advance, payment, transfer of funds or 4600
transfer of anything of value including a transfer of funds from 4601
an inter vivos or testamentary trust or decedent's estate, and the 4602
payment by any person other than the person to whom the services 4603
are rendered for the personal services of another person, which 4604
contribution is made, received, or used for the purpose of 4605
influencing the results of an election to the state teachers 4606
retirement board under section 3307.07 of the Revised Code. 4607
"Contribution" does not include:4608

        (a) Services provided without compensation by individuals 4609
volunteering a portion or all of their time on behalf of a person;4610

        (b) Ordinary home hospitality;4611

        (c) The personal expenses of a volunteer paid for by that 4612
volunteer campaign worker.4613

        (4) "Election day" means the following, as appropriate to the 4614
situation:4615

        (a) The first Monday in May of a year for which section 4616
3307.06 of the Revised Code specifies that an election for a 4617
member of the state teachers retirement board be held;4618

        (b) If, pursuant to section 3307.071 of the Revised Code, no 4619
election is held, the first Monday in May of a year that the 4620
election would have been held if not for section 3307.071 of the 4621
Revised Code.4622

        (5) "Expenditure" means the disbursement or use of a 4623
contribution for the purpose of influencing the results of an 4624
election to the state teachers retirement board under section 4625
3307.07 of the Revised Code.4626

        (6) "In-kind contribution" means anything of value other than 4627
money that is used to influence the results of an election to the 4628
state teachers retirement board under section 3307.07 of the 4629
Revised Code or is transferred to or used in support of or in 4630
opposition to a candidate and that is made with the consent of, in 4631
coordination, cooperation, or consultation with, or at the request 4632
or suggestion of the benefited candidate. The financing of the 4633
dissemination, distribution, or republication, in whole or part, 4634
of any broadcast or of any written, graphic, or other form of 4635
campaign materials prepared by the candidate, the candidate's 4636
campaign committee, or their authorized agents is an in-kind 4637
contribution to the candidate and an expenditure by the candidate.4638

        (7) "Personal expenses" includes ordinary expenses for 4639
accommodations, clothing, food, personal motor vehicle or 4640
airplane, and home telephone.4641

        (B) Each candidate who, or whose campaign committee, receives 4642
a contribution or in-kind contribution or makes an expenditure in 4643
connection with the candidate's efforts to be elected to the state 4644
teachers retirement board shall file with the secretary of state 4645
two complete, accurate, and itemized statements setting forth in 4646
detail the contributions, in-kind contributions, and expenditures. 4647
The statements shall be filed regardless of whether, pursuant to 4648
section 3307.071 of the Revised Code, no election is held. The 4649
statements shall be made on a form prescribed under section 111.30 4650
of the Revised Code.4651

       The first statement shall be filed not later than four p.m. 4652
on the day that is twelve days before election day. The second 4653
statement shall be filed not sooner than the day that is eight 4654
days after election day and not later than thirty-eight days after 4655
election day. The first statement shall reflect contributions and 4656
in-kind contributions received and expenditures made to the close 4657
of business on the twentieth day before election day. The second 4658
statement shall reflect contributions and in-kind contributions 4659
received and expenditures made during the period beginning on the 4660
nineteenth day before election day and ending on the close of 4661
business on the seventh day after election day.4662

       (C) Each individual, partnership, or other entity who makes 4663
an expenditure in connection with the candidate's efforts to be 4664
elected to the state teachers retirement board shall file with the 4665
secretary of state two complete, accurate, and itemized statements 4666
setting forth in detail the expenditures. The statements shall be 4667
filed regardless of whether, pursuant to section 3307.071 of the 4668
Revised Code, no election is held. The statements shall be made on 4669
a form prescribed under section 111.30 of the Revised Code. 4670

       The first statement shall be filed not later than four p.m. 4671
on the day that is twelve days before election day. The second 4672
statement shall be filed not sooner than the day that is eight 4673
days after election day and not later than thirty-eight days after 4674
election day. The first statement shall reflect expenditures made 4675
to the close of business on the twentieth day before election day. 4676
The second statement shall reflect expenditures made during the 4677
period beginning on the nineteenth day before election day and 4678
ending on the close of business on the seventh day after election 4679
day.4680

       Sec. 3307.073. (A) No person shall knowingly fail to file a 4681
complete and accurate statement in accordance with section 4682
3307.072 of the Revised Code.4683

       (B) No person, during the course of a person seeking 4684
nomination for, and during any campaign for, election to the state 4685
teachers retirement board, shall knowingly and with intent to 4686
affect the nomination or the outcome of the campaign do any of the 4687
following by means of campaign materials, an advertisement on 4688
radio or television or in a newspaper or periodical, a public 4689
speech, press release, or otherwise: 4690

       (1) With regard to a candidate, identify the candidate in a 4691
manner that implies that the candidate is a member of the board or 4692
use the term "re-elect" when the candidate is not currently a 4693
member of the board; 4694

       (2) Make a false statement concerning the formal schooling or 4695
training completed or attempted by a candidate; a degree, diploma, 4696
certificate, scholarship, grant, award, prize, or honor received, 4697
earned, or held by a candidate; or the period of time during which 4698
a candidate attended any school, college, community technical 4699
school, or institution; 4700

       (3) Make a false statement concerning the professional, 4701
occupational, or vocational licenses held by a candidate, or 4702
concerning any position the candidate held for which the candidate 4703
received a salary or wages; 4704

       (4) Make a false statement that a candidate or public 4705
official has been indicted or convicted of a theft offense, 4706
extortion, or other crime involving financial corruption or moral 4707
turpitude; 4708

       (5) Make a statement that a candidate has been indicted for 4709
any crime or has been the subject of a finding by the Ohio 4710
elections commission without disclosing the outcome of any legal 4711
proceedings resulting from the indictment or finding; 4712

       (6) Make a false statement that a candidate or official has a 4713
record of treatment or confinement for mental disorder; 4714

       (7) Make a false statement that a candidate or official has 4715
been subjected to military discipline for criminal misconduct or 4716
dishonorably discharged from the armed services; 4717

       (8) Falsely identify the source of a statement, issue 4718
statements under the name of another person without authorization, 4719
or falsely state the endorsement of or opposition to a candidate 4720
by a person or publication; 4721

       (9) Make a false statement concerning the voting record of a 4722
candidate or public official; 4723

       (10) Post, publish, circulate, distribute, or otherwise 4724
disseminate a false statement concerning a candidate, either 4725
knowing the same to be false or with reckless disregard of whether 4726
it was false or not, if the statement is designed to promote the 4727
election, nomination, or defeat of the candidate. 4728

       Sec. 3307.074. The secretary of state, or any person acting 4729
on personal knowledge and subject to the penalties of perjury, may 4730
file a complaint with the Ohio elections commission alleging a 4731
violation of section 3307.073 of the Revised Code. The complaint 4732
shall be made on a form prescribed and provided by the commission.4733

        On receipt of a complaint under this section, the commission 4734
shall hold a hearing open to the public to determine whether the 4735
violation alleged in the complaint has occurred. The commission 4736
may administer oaths and issue subpoenas to any person in the 4737
state compelling the attendance of witnesses and the production of 4738
relevant papers, books, accounts, and reports. On the refusal of 4739
any person to obey a subpoena or to be sworn or to answer as a 4740
witness, the commission may apply to the court of common pleas of 4741
Franklin county under section 2705.03 of the Revised Code. The 4742
court shall hold contempt proceedings in accordance with Chapter 4743
2705. of the Revised Code.4744

        The commission shall provide the person accused of the 4745
violation at least seven days prior notice of the time, date, and 4746
place of the hearing. The accused may be represented by an 4747
attorney and shall have an opportunity to present evidence, call 4748
witnesses, and cross-examine witnesses.4749

        At the hearing, the commission shall determine whether the 4750
violation alleged in the complaint has occurred. If the commission 4751
determines that a violation of division (A) of section 3307.073 of 4752
the Revised Code has occurred, the commission shall either impose 4753
a fine under section 3307.99 of the Revised Code or enter a 4754
finding that good cause has been shown not to impose the fine. If 4755
the commission determines that a violation of division (B) of 4756
section 3307.073 of the Revised Code has occurred, the commission 4757
shall impose the fine described in section 3307.99 of the Revised 4758
Code, refer the matter to the appropriate prosecutor, or enter a 4759
finding that good cause has been shown not to impose a fine or 4760
refer the matter to a prosecutor.4761



       Sec. 3307.11.  The state teachers retirement board shall4763
elect from its membership, a chairperson and a vice-chairperson. 4764
The board shall employ an executive director who shall serve as4765
secretary, and shall employ other persons necessary to operate the 4766
system and to fulfill the board's duties and responsibilities4767
under Chapter 3307. of the Revised Code. The4768

       Effective ninety days after the effective date of this 4769
amendment, the board may not employ a state retirement system 4770
investment officer, as defined in section 1707.01 of the Revised 4771
Code, who does not hold a valid state retirement system investment 4772
officer license issued by the division of securities in the 4773
department of commerce.4774

        The compensation of all employees and all other expenses of 4775
the board necessary for the proper operation of the system shall 4776
be paid in such amounts as the board approves.4777

       Every expense voucher of an employee, officer, or board4778
member of the state teachers retirement system shall itemize all4779
purchases and expenditures.4780

       The board shall receive all applications for retirement under 4781
the plans described in section 3307.031 of the Revised Code, shall 4782
provide for the payment of all retirement allowances and other 4783
benefits payable under this chapter, and shall make other4784
expenditures authorized by this chapter.4785

       Sec. 3307.152. The attorney general may maintain a civil 4786
action under section 109.98 of the Revised Code against a member 4787
of the state teachers retirement board for harm resulting from a 4788
breach of the member's fiduciary duty.4789

       Sec. 3307.20.  (A) As used in this section:4790

       (1) "Personal history record" means information maintained by 4791
the state teachers retirement board on an individual who is a4792
member, former member, contributor, former contributor, retirant,4793
or beneficiary that includes the address, telephone number, social4794
security number, record of contributions, correspondence with the4795
state teachers retirement system, or other information the board4796
determines to be confidential.4797

       (2) "Retirant" has the same meaning as in section 3307.50 of4798
the Revised Code.4799

       (B) The records of the board shall be open to public4800
inspection, except for the following, which shall be excluded,4801
except with the written authorization of the individual concerned:4802

       (1) The individual's personal records provided for in section 4803
3307.23 of the Revised Code;4804

       (2) The individual's personal history record;4805

       (3) Any information identifying, by name and address, the4806
amount of a monthly allowance or benefit paid to the individual.4807

       (C) All medical reports and recommendations under sections4808
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged,4809
except that copies of such medical reports or recommendations4810
shall be made available to the personal physician, attorney, or4811
authorized agent of the individual concerned upon written release4812
received from the individual or the individual's agent, or, when4813
necessary for the proper administration of the fund, to the board4814
assigned physician.4815

       (D) Any person who is a member or contributor of the system4816
shall be furnished, on written request, with a statement of the4817
amount to the credit of the person's account. The board need not4818
answer more than one request of a person in any one year.4819

       (E) Notwithstanding the exceptions to public inspection in4820
division (B) of this section, the board may furnish the following4821
information:4822

       (1) If a member, former member, retirant, contributor, or4823
former contributor is subject to an order issued under section4824
2907.15 of the Revised Code or is convicted of or pleads guilty to4825
a violation of section 2921.41 of the Revised Code, on written4826
request of a prosecutor as defined in section 2935.01 of the4827
Revised Code, the board shall furnish to the prosecutor the4828
information requested from the individual's personal history4829
record.4830

       (2) Pursuant to a court or administrative order issued under4831
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the4832
Revised Code, the board shall furnish to a court or child support4833
enforcement agency the information required under that section.4834

       (3) At the written request of any person, the board shall4835
provide to the person a list of the names and addresses of4836
members, former members, retirants, contributors, former4837
contributors, or beneficiaries. The costs of compiling, copying,4838
and mailing the list shall be paid by such person.4839

       (4) Within fourteen days after receiving from the director of 4840
job and family services a list of the names and social security4841
numbers of recipients of public assistance pursuant to section4842
5101.181 of the Revised Code, the board shall inform the auditor4843
of state of the name, current or most recent employer address, and4844
social security number of each member whose name and social4845
security number are the same as that of a person whose name or4846
social security number was submitted by the director. The board4847
and its employees shall, except for purposes of furnishing the4848
auditor of state with information required by this section,4849
preserve the confidentiality of recipients of public assistance in4850
compliance with division (A) of section 5101.181 of the Revised4851
Code.4852

       (5) The system shall comply with orders issued under section4853
3105.87 of the Revised Code.4854

       On the written request of an alternate payee, as defined in4855
section 3105.80 of the Revised Code, the system shall furnish to4856
the alternate payee information on the amount and status of any4857
amounts payable to the alternate payee under an order issued under4858
section 3105.171 or 3105.65 of the Revised Code.4859

       (6) At the request of any person, the board shall make 4860
available to the person copies of all documents, including 4861
resumes, in the board's possession regarding filling a vacancy of 4862
a teacher member or retired teacher member of the board. The 4863
person who made the request shall pay the cost of compiling, 4864
copying, and mailing the documents. The information described in 4865
this division is a public record.4866

       (7) The board shall furnish the personal history records kept 4867
by the board to the secretary of state for the purposes of 4868
certifying an election pursuant to section 111.30 of the Revised 4869
Code.4870

       (F) A statement that contains information obtained from the4871
system's records that is signed by an officer of the retirement4872
system and to which the system's official seal is affixed, or4873
copies of the system's records to which the signature and seal are4874
attached, shall be received as true copies of the system's records4875
in any court or before any officer of this state.4876

       Sec. 3307.99. (A) Whoever violates division (A) of section 4877
3307.073 of the Revised Code shall be fined not more than one 4878
hundred dollars for each day of the violation.4879

       (B) Whoever violates division (B) of section 3307.073 of the 4880
Revised Code shall be imprisoned for not more than six months or 4881
fined not more than five thousand dollars, or both. 4882

       (C) Fines imposed by the Ohio elections commission under this 4883
section shall be paid into the Ohio elections commission fund 4884
created under section 3513.10 of the Revised Code.4885

       Sec. 3309.03.  A school employees retirement system is hereby4886
established for the employees as defined in section 3309.01 of the4887
Revised Code, which shall include the several funds created and4888
placed under the management of the school employees retirement4889
board for the payment of retirement allowances and other benefits4890
provided in Chapter 3309. of the Revised Code. The board may sue4891
and be sued, plead and be impleaded, contract and be contracted4892
with, and do all things necessary to carry out Chapter 3309. of4893
the Revised Code. All of its business shall be transacted, all of4894
its funds invested, all warrants for money drawn and payments4895
made, and all of its cash, securities, and other property shall be4896
held in the name of the board, or in the name of its nominee,4897
provided that nominees are authorized by retirement board4898
resolution for such purposes. The board may take all appropriate4899
action to avoid payment by the system or its members of federal or4900
state income taxes on contributions to the system or amounts4901
earned on those contributions.4902

       If the Ohio retirement study council establishes a uniform 4903
format for any report the board is required to submit to the 4904
council, the board shall submit the report in that format.4905

       Sec. 3309.041. The school employees retirement board shall do 4906
all of the following:4907

        (A) In consultation with the Ohio ethics commission, review 4908
any existing policy regarding the travel and payment of travel 4909
expenses of members and employees of the school employees 4910
retirement board and adopt rules in accordance with section 4911
3309.04 of the Revised Code establishing a new or revised policy 4912
regarding travel and payment of travel expenses;4913

        (B) If the board intends to award a bonus to any employee of 4914
the board, adopt rules in accordance with section 3309.04 of the 4915
Revised Code establishing a policy regarding employee bonuses;4916

        (C) Provide copies of the rules adopted under divisions (A) 4917
and (B) of this section to each member of the Ohio retirement 4918
study council;4919

       (D) Submit to the Ohio retirement study council a proposed 4920
operating budget, including a travel budget, for the next 4921
immediate fiscal year and adopt that budget not earlier than sixty 4922
days after it is submitted to the council.4923

       Sec. 3309.042. The school employees retirement board shall, 4924
in consultation with the Ohio ethics commission, develop an ethics 4925
policy. The board shall submit this policy to the Ohio retirement 4926
study council for approval. 4927

       The council shall review the policy in consultation with the 4928
Ohio ethics commission and, if the council determines that the 4929
policy is adequate, approve the policy. If the council determines 4930
that the policy is inadequate, it shall specify the revisions to 4931
be made and the board shall submit a revised policy. If the 4932
council approves the revised policy, the board shall adopt it. If 4933
not, the board shall make any further revisions required by the 4934
council and adopt the policy.4935

       The board periodically shall provide ethics training to 4936
members and employees of the board. The training shall include 4937
training regarding the requirements and prohibitions of Chapter 4938
102. of the Revised Code and sections 2921.42 and 2921.43 of the 4939
Revised Code and any other training the board considers 4940
appropriate.4941

        The board shall establish a procedure to ensure that each 4942
employee of the board is informed of the procedure for filing a 4943
complaint alleging violation of Chapter 102. of the Revised Code 4944
or section 2921.42 or 2921.43 of the Revised Code with the Ohio 4945
ethics commission or the appropriate prosecuting attorney.4946

       Sec. 3309.043.  (A) The school employees retirement board 4947
shall designate a person who is a licensed state retirement system 4948
investment officer to be the chief investment officer for the 4949
school employees retirement system. The board shall notify the 4950
division of securities of the department of commerce in writing of 4951
its designation and of any change in its designation within ten 4952
calendar days of the designation or change.4953

       (B) The chief investment officer shall reasonably supervise 4954
the licensed state retirement system investment officers and other 4955
persons employed by the school employees retirement system with a 4956
view toward preventing violations of Chapter 1707. of the Revised 4957
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and 4958
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 4959
and following, and the "Securities Exchange Act of 1934," 48 Stat. 4960
881, 15 U.S.C. 78a, and following, and the rules and regulations 4961
promulgated under those statutes. This duty of reasonable 4962
supervision shall include the adoption, implementation, and 4963
enforcement of written policies and procedures reasonably designed 4964
to prevent persons employed by the school employees retirement 4965
system from misusing material, nonpublic information in violation 4966
of those laws, rules, and regulations.4967

       For purposes of this division, no chief investment officer 4968
shall be considered to have failed to satisfy the officer's duty 4969
of reasonable supervision if the officer has done all of the 4970
following:4971

       (1) Adopted and implemented written procedures, and a system 4972
for applying the procedures, that would reasonably be expected to 4973
prevent and detect, insofar as practicable, any violation by its 4974
licensed investment officers and other persons employed by the 4975
school employees retirement system;4976

       (2) Reasonably discharged the duties and obligations 4977
incumbent on the chief investment officer by reason of the 4978
established procedures and the system for applying the procedures 4979
when the officer had no reasonable cause to believe that there was 4980
a failure to comply with the procedures and systems;4981

       (3) Reviewed, at least annually, the adequacy of the policies 4982
and procedures established pursuant to this section and the 4983
effectiveness of their implementation.4984

       (C) The chief investment officer shall ensure that securities 4985
transactions are executed in such a manner that the school 4986
employees retirement system's total costs or proceeds in each 4987
transaction are the most favorable under the circumstances. 4988

       For purposes of this division, no chief investment officer 4989
shall be considered to have failed to satisfy the officer's duty 4990
of best execution if the officer has done both of the following:4991

       (1) Adopted and implemented a written policy that outlines 4992
the criteria used to select broker-dealers that execute securities 4993
transactions on behalf of the school employees retirement system, 4994
which criteria shall include all of the following:4995

       (a) Commissions charged by the broker-dealer, both in the 4996
aggregate and on a per share basis;4997

       (b) The execution speed and trade settlement capabilities of 4998
the broker-dealer;4999

       (c) The responsiveness, reliability, and integrity of the 5000
broker-dealer;5001

       (d) The nature and value of research provided by the 5002
broker-dealer; 5003

       (e) Any special capabilities of the broker-dealer.5004

       (2) Reviewed, at least annually, the performance of 5005
broker-dealers that execute securities transactions on behalf of 5006
the school employees retirement system. 5007

       Sec. 3309.05.  The school employees retirement board shall5008
consist of the following seven members:5009

       (A) The auditor of state;5010

       (B) The attorney generaltreasurer of state;5011

       (C) Four members, known as employee members, who shall be5012
members of the school employees retirement system, and who shall5013
be elected by ballot by the members of the system;5014

       (D) One member, known as the retirant member, who shall be a5015
former member of the retirement system who is a resident of this5016
state and currently receiving an age and service retirement5017
benefit, a disability benefit, or benefits under a plan5018
established under section 3309.81 of the Revised Code. The5019
retirant member shall be elected by ballot by former members of5020
the system who are currently receiving an age and service5021
retirement benefit, a disability benefit, or benefits under a plan 5022
established under section 3309.81 of the Revised Code;5023

       (E) One member, known as the school board member, who shall 5024
be a member of a city, local, exempted village, or joint 5025
vocational school board district board of education or a member of 5026
an educational service center governing board, but need not be a 5027
member of the retirement system;5028

       (F) One member, known as the school treasurer member, who 5029
shall be the treasurer of a city, local, exempted village, or 5030
joint vocational school board district board of education or 5031
treasurer for an educational service center, but need not be a 5032
member of the retirement system.5033

       Sec. 3309.051. Each newly elected member of the school 5034
employees retirement board and each individual appointed to fill a 5035
vacancy on the board shall, not later than ninety days after 5036
commencing service as a board member, complete the orientation 5037
program component of the retirement board member education program 5038
established under section 171.50 of the Revised Code.5039

        Each member of the board who has served a year or longer as a 5040
board member shall, not less than twice each year, attend one or 5041
more programs that are part of the continuing education component 5042
of the retirement board member education program established under 5043
section 171.50 of the Revised Code.5044

       Sec. 3309.06. (A) Elections for employee and retirant members 5045
of the school employees retirement board shall be held on the 5046
first Monday of March. Terms of office of the employee members and 5047
the retirant member of the board shall be for four years each, 5048
commencing on the first day of July following the election and 5049
ending on the thirtieth day of June. The initial terms of the5050
retirant member and the new employee member shall commence on July 5051
1, 1984, and end on June 30, 1988. Vancancies occurring in5052

       (B) The board member who is a school board member and the 5053
board member who is a school treasurer shall each be elected by 5054
ballot for a term of four years at the annual election for 5055
employee and retirant members of the board, as provided in 5056
division (A) of this section. The board member who is a school 5057
board member shall be elected by school board members and the 5058
board member who is a school treasurer shall be elected by school 5059
treasurers regardless of whether they are members of the 5060
retirement system.5061

       The initial school board and school treasurer members shall 5062
be elected at the first annual election that occurs not less than 5063
ninety days after the effective date of this amendment. 5064
Thereafter, the school board member and the school treasurer 5065
members shall be elected to the board at the annual election in 5066
the year in which the terms of the current school board member and 5067
of the school treasurer member would expire. The terms of office 5068
of the school board member and of the school treasurer member 5069
shall begin on the first day of July following the member's 5070
election.5071

       (C) If a vacancy occurs during the termsterm of employee 5072
members or the retirantan elected member of the board shall be 5073
filled by, the remaining members of the board for the unexpired 5074
termsshall elect a successor member. EmployeeOn certification of 5075
the election results under section 111.30 of the Revised Code, the 5076
successor member shall hold office until the next board election 5077
that occurs not less than ninety days after the successor member's 5078
election. The successor member shall qualify for board membership 5079
under the same division of section 3309.05 of the Revised Code as 5080
the member's predecessor in office. Elections under this division 5081
shall be conducted under the supervision of the secretary of state 5082
pursuant to section 111.30 of the Revised Code.5083

        (D) Employee members or the retirant member of the board who 5084
fail to attend the meetings of the board for four months or5085
longer, without being excused, shall be considered as having 5086
resigned and successors shall be elected for their unexpired terms 5087
pursuant to division (C) of this section. If as a result of5088
changed circumstances the retirant member would no longer qualify 5089
for membership on the board as the retirant member, the office 5090
shall be considered vacant, and a successor retirant member shall 5091
be elected pursuant to division (C) of this section.5092

       Sec. 3309.061. An employee member or retirant member of the 5093
school employees retirement board who is charged with committing a 5094
felony, a theft offense as defined in section 2913.01 of the 5095
Revised Code, or a violation of section 102.02, 102.03, 102.04, 5096
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 5097
2921.44 of the Revised Code shall be suspended from participation 5098
on the board for the period during which the charges are pending. 5099
If the charges are dismissed, the member is found not guilty, or 5100
the charges are otherwise resolved in a manner not resulting in 5101
the member being convicted of or pleading guilty to an offense of 5102
that nature, the suspension shall end, and the member may 5103
participate on the board. If the member pleads guilty to or is 5104
convicted of the offense, the position of the member on the board 5105
shall be deemed vacant. A person who has pleaded guilty to or been 5106
convicted of an offense of that nature is ineligible for election 5107
to the office of employee or retirant member of the school 5108
employees retirement board.5109

       The Ohio retirement study council may hold a hearing to 5110
determine whether to remove an employee member or retirant member 5111
of the school employees retirement board who has been suspended 5112
pursuant to this section. If it decides to hold a hearing, the 5113
council shall provide the suspended board member at least seven 5114
days prior notice of the time, date, and place of the hearing. The 5115
suspended board member may be represented by an attorney. At the 5116
hearing the suspended board member, or the suspended board 5117
member's attorney, shall have an opportunity to present evidence, 5118
call witnesses, and cross-examine witnesses. The hearing shall be 5119
open to the public. At the conclusion of the hearing, if the 5120
voting members of the council unanimously vote to remove the 5121
suspended board member, the suspended board member shall be 5122
removed from the board, and the position of the member shall be 5123
deemed vacant.5124

       Sec. 3309.07.  (A) All elections for employee or retirant5125
members of the school employees retirement board shall be held5126
under the direction of the board in accordance with rules adopted 5127
under section 111.30 of the Revised Code.5128

       (B) Any member of the school employees retirement system,5129
other than a disability benefit recipient, shall be eligible to be 5130
nominated for election as an employee member of the board who has 5131
been nominated by a petition that is signed by at least five 5132
hundred members, provided that there shall beand certified under 5133
section 111.30 of the Revised Code. The petition shall contain the 5134
signatures of not less than twenty signersmembers each from at5135
least ten counties wherein such members are employed. The petition5136
shall specify the term of office and position. The name of any5137
member so nominated shall be placed upon the ballot by the board5138
as a regular candidate. Other names of eligible candidates may at5139
any election be substituted for the regular candidates by writing5140
such names upon the ballot. The candidate receiving the highest5141
number of votes for any term as member of the board shall be5142
elected for such term on certification of the election results 5143
under section 111.30 of the Revised Code. In any year in which two 5144
employee member positions must be filled, the candidates who5145
receive the highest and second highest number of votes shall be5146
elected to the offices on certification of the election results 5147
under section 111.30 of the Revised Code.5148

       (C) Any former member of the school employees retirement5149
system described in division (D) of section 3309.05 of the Revised5150
Code is eligible for election as the retirant member of the board5151
to represent former members currently receiving an age and service5152
retirement benefit, a disability benefit, or benefits under a plan5153
established under section 3309.81 of the Revised Code, provided5154
that such person has been nominated by a petition that is 5155
certified under section 111.30 of the Revised Code and signed by 5156
at least one hundred fifty former members of the system who are5157
currently receiving an age and service retirement benefit, a5158
disability benefit, or benefits under a plan established under5159
section 3309.81 of the Revised Code. The petition shall contain5160
the signatures of at least ten such recipients from each of at5161
least five counties wherein recipients of benefits from this5162
system reside. The petition shall specify the term of office and5163
position. The name of any person so nominated shall be placed upon 5164
the ballot by the board as a regular candidate. Other names of 5165
eligible candidates may at any election be substituted for the5166
regular candidates by writing such names upon the ballot. The5167
candidate receiving the highest number of votes for any term as5168
member of the board shall be elected for such term on 5169
certification of the election results under section 111.30 of the 5170
Revised Code.5171

       No employee member of the board who retires while a member of5172
the board shall be eligible to become a retirant member of the5173
board for three years after the date of the member's retirement.5174

       Sec. 3309.061.        Sec. 3309.071.  Notwithstanding sections 3309.05, 5175
3309.06, and 3309.07 of the Revised Code, the school employees 5176
retirement board is not required to hold an election for a 5177
position on the board as an employee member or retirant member if 5178
only one candidate has been nominated for the position by petition5179
in accordance with section 3309.07 of the Revised Code. The5180
candidate shall take office as if elected. The term of office5181
shall be four years beginning on the first day of July following5182
the date the candidate was nominated.5183

       Sec. 3309.072. (A) As used in this section:5184

        (1) "Campaign committee" means a candidate or a combination 5185
of two or more persons authorized by a candidate to receive 5186
contributions and in-kind contributions and make expenditures on 5187
behalf of the candidate.5188

        (2) "Candidate" means an individual who has been nominated 5189
pursuant to section 3309.07 of the Revised Code for election to 5190
the school employees retirement board.5191

        (3) "Contribution" means a loan, gift, deposit, forgiveness 5192
of indebtedness, donation, advance, payment, transfer of funds or 5193
transfer of anything of value including a transfer of funds from 5194
an inter vivos or testamentary trust or decedent's estate, and the 5195
payment by any person other than the person to whom the services 5196
are rendered for the personal services of another person, which 5197
contribution is made, received, or used for the purpose of 5198
influencing the results of an election to the school employees 5199
retirement board under section 3309.07 of the Revised Code. 5200
"Contribution" does not include:5201

        (a) Services provided without compensation by individuals 5202
volunteering a portion or all of their time on behalf of a person;5203

        (b) Ordinary home hospitality;5204

        (c) The personal expenses of a volunteer paid for by that 5205
volunteer campaign worker.5206

        (4) "Election day" means the following, as appropriate to the 5207
situation:5208

        (a) The first Monday in March of a year for which section 5209
3309.06 of the Revised Code specifies that an election for a 5210
member of the school employees retirement board be held;5211

        (b) If, pursuant to section 3309.071 of the Revised Code, no 5212
election is held, the first Monday in March of a year that the 5213
election would have been held if not for section 3309.071 of the 5214
Revised Code.5215

        (5) "Expenditure" means the disbursement or use of a 5216
contribution for the purpose of influencing the results of an 5217
election to the school employees retirement board under section 5218
3309.07 of the Revised Code.5219

        (6) "In-kind contribution" means anything of value other than 5220
money that is used to influence the results of an election to the 5221
school employees retirement board under section 3309.07 of the 5222
Revised Code or is transferred to or used in support of or in 5223
opposition to a candidate and that is made with the consent of, in 5224
coordination, cooperation, or consultation with, or at the request 5225
or suggestion of the benefited candidate. The financing of the 5226
dissemination, distribution, or republication, in whole or part, 5227
of any broadcast or of any written, graphic, or other form of 5228
campaign materials prepared by the candidate, the candidate's 5229
campaign committee, or their authorized agents is an in-kind 5230
contribution to the candidate and an expenditure by the candidate.5231

        (7) "Personal expenses" includes ordinary expenses for 5232
accommodations, clothing, food, personal motor vehicle or 5233
airplane, and home telephone.5234

        (B) Each candidate who, or whose campaign committee, receives 5235
a contribution or in-kind contribution or makes an expenditure in 5236
connection with the candidate's efforts to be elected to the 5237
school employees retirement board shall file with the secretary of 5238
state two complete, accurate, and itemized statements setting 5239
forth in detail the contributions, in-kind contributions, and 5240
expenditures. The statements shall be filed regardless of whether, 5241
pursuant to section 3309.071 of the Revised Code, no election is 5242
held. The statements shall be made on a form prescribed under 5243
section 111.30 of the Revised Code.5244

        The first statement shall be filed not later than four p.m. 5245
on the day that is twelve days before election day. The second 5246
statement shall be filed not sooner than the day that is eight 5247
days after election day and not later than thirty-eight days after 5248
election day. The first statement shall reflect contributions and 5249
in-kind contributions received and expenditures made to the close 5250
of business on the twentieth day before election day. The second 5251
statement shall reflect contributions and in-kind contributions 5252
received and expenditures made during the period beginning on the 5253
nineteenth day before election day and ending on the close of 5254
business on the seventh day after election day.5255

       (C) Each individual, partnership, or other entity who makes 5256
an expenditure in connection with the candidate's efforts to be 5257
elected to the school employees retirement board shall file with 5258
the secretary of state two complete, accurate, and itemized 5259
statements setting forth in detail the expenditures. The 5260
statements shall be filed regardless of whether, pursuant to 5261
section 3309.071 of the Revised Code, no election is held. The 5262
statements shall be made on a form prescribed under section 111.30 5263
of the Revised Code. 5264

       The first statement shall be filed not later than four p.m. 5265
on the day that is twelve days before election day. The second 5266
statement shall be filed not sooner than the day that is eight 5267
days after election day and not later than thirty-eight days after 5268
election day. The first statement shall reflect expenditures made 5269
to the close of business on the twentieth day before election day. 5270
The second statement shall reflect expenditures made during the 5271
period beginning on the nineteenth day before election day and 5272
ending on the close of business on the seventh day after election 5273
day.5274

       Sec. 3309.073. (A) No person shall knowingly fail to file a 5275
complete and accurate statement in accordance with section 5276
3309.072 of the Revised Code.5277

       (B) No person, during the course of a person seeking 5278
nomination for, and during any campaign for, election to the 5279
school employees retirement board, shall knowingly and with intent 5280
to affect the nomination or the outcome of the campaign do any of 5281
the following by means of campaign materials, an advertisement on 5282
radio or television or in a newspaper or periodical, a public 5283
speech, press release, or otherwise: 5284

       (1) With regard to a candidate, identify the candidate in a 5285
manner that implies that the candidate is a member of the board or 5286
use the term "re-elect" when the candidate is not currently a 5287
member of the board; 5288

       (2) Make a false statement concerning the formal schooling or 5289
training completed or attempted by a candidate; a degree, diploma, 5290
certificate, scholarship, grant, award, prize, or honor received, 5291
earned, or held by a candidate; or the period of time during which 5292
a candidate attended any school, college, community technical 5293
school, or institution; 5294

       (3) Make a false statement concerning the professional, 5295
occupational, or vocational licenses held by a candidate, or 5296
concerning any position the candidate held for which the candidate 5297
received a salary or wages; 5298

       (4) Make a false statement that a candidate or public 5299
official has been indicted or convicted of a theft offense, 5300
extortion, or other crime involving financial corruption or moral 5301
turpitude; 5302

       (5) Make a statement that a candidate has been indicted for 5303
any crime or has been the subject of a finding by the Ohio 5304
elections commission without disclosing the outcome of any legal 5305
proceedings resulting from the indictment or finding; 5306

       (6) Make a false statement that a candidate or official has a 5307
record of treatment or confinement for mental disorder; 5308

       (7) Make a false statement that a candidate or official has 5309
been subjected to military discipline for criminal misconduct or 5310
dishonorably discharged from the armed services; 5311

       (8) Falsely identify the source of a statement, issue 5312
statements under the name of another person without authorization, 5313
or falsely state the endorsement of or opposition to a candidate 5314
by a person or publication; 5315

       (9) Make a false statement concerning the voting record of a 5316
candidate or public official; 5317

       (10) Post, publish, circulate, distribute, or otherwise 5318
disseminate a false statement concerning a candidate, either 5319
knowing the same to be false or with reckless disregard of whether 5320
it was false or not, if the statement is designed to promote the 5321
election, nomination, or defeat of the candidate. 5322

       Sec. 3309.074. The secretary of state, or any person acting 5323
on personal knowledge and subject to the penalties of perjury, may 5324
file a complaint with the Ohio elections commission alleging a 5325
violation of section 3309.073 of the Revised Code. The complaint 5326
shall be made on a form prescribed and provided by the commission.5327

        On receipt of a complaint under this section, the commission 5328
shall hold a hearing open to the public to determine whether the 5329
violation alleged in the complaint has occurred. The commission 5330
may administer oaths and issue subpoenas to any person in the 5331
state compelling the attendance of witnesses and the production of 5332
relevant papers, books, accounts, and reports. On the refusal of 5333
any person to obey a subpoena or to be sworn or to answer as a 5334
witness, the commission may apply to the court of common pleas of 5335
Franklin county under section 2705.03 of the Revised Code. The 5336
court shall hold contempt proceedings in accordance with Chapter 5337
2705. of the Revised Code.5338

        The commission shall provide the person accused of the 5339
violation at least seven days prior notice of the time, date, and 5340
place of the hearing. The accused may be represented by an 5341
attorney and shall have an opportunity to present evidence, call 5342
witnesses, and cross-examine witnesses.5343

        At the hearing, the commission shall determine whether the 5344
violation alleged in the complaint has occurred. If the commission 5345
determines that a violation of division (A) of section 3309.073 of 5346
the Revised Code has occurred, the commission shall either impose 5347
a fine under section 3309.99 of the Revised Code or enter a 5348
finding that good cause has been shown not to impose the fine. If 5349
the commission determines that a violation of division (B) of 5350
section 3309.073 of the Revised Code has occurred, the commission 5351
shall impose the fine described in section 3309.99 of the Revised 5352
Code, refer the matter to the appropriate prosecutor, or enter a 5353
finding that good cause has been shown to not impose a fine or 5354
refer the matter to the appropriate prosecutor.5355

       Sec. 3309.14.  The school employees retirement board shall5356
secure the service of such technical and administrative employees5357
as are necessary for the transaction of the business of the school 5358
employees retirement system. The5359

       Effective ninety days after the effective date of this 5360
amendment, the board may not employ a state retirement system 5361
investment officer, as defined in section 1707.01 of the Revised 5362
Code, who does not hold a valid state retirement system investment 5363
officer license issued by the division of securities in the 5364
department of commerce.5365

       The compensation of all persons engaged by the board and all 5366
other expenses of the board necessary for the proper operation of 5367
the system shall be paid at such rates and in such amounts as the 5368
board approves. Every expense voucher of an employee, officer, or 5369
board member of the school employees retirement system shall 5370
itemize all purchases and expenditures.5371

       The board shall receive and act upon all applications for5372
retirement under Chapter 3309. of the Revised Code, and shall5373
provide for the payment of all retirement allowances and other5374
benefits and shall make other expenditures required or authorized5375
by this chapter.5376

       Sec. 3309.157. The attorney general may maintain a civil 5377
action under section 109.98 of the Revised Code against a member 5378
of the school employees retirement board for harm resulting from a 5379
breach of the member's fiduciary duty.5380

       Sec. 3309.22.  (A)(1) As used in this division, "personal5381
history record" means information maintained by the board on an5382
individual who is a member, former member, contributor, former5383
contributor, retirant, or beneficiary that includes the address,5384
telephone number, social security number, record of contributions,5385
correspondence with the system, and other information the board5386
determines to be confidential.5387

       (2) The records of the board shall be open to public5388
inspection, except for the following, which shall be excluded,5389
except with the written authorization of the individual concerned:5390

       (a) The individual's statement of previous service and other5391
information as provided for in section 3309.28 of the Revised5392
Code;5393

       (b) Any information identifying by name and address the5394
amount of a monthly allowance or benefit paid to the individual;5395

       (c) The individual's personal history record.5396

       (B) All medical reports and recommendations required by the5397
system are privileged except that copies of such medical reports5398
or recommendations shall be made available to the personal5399
physician, attorney, or authorized agent of the individual5400
concerned upon written release received from the individual or the5401
individual's agent, or when necessary for the proper5402
administration of the fund, to the board assigned physician.5403

       (C) Any person who is a contributor of the system shall be5404
furnished, on written request, with a statement of the amount to5405
the credit of the person's account. The board need not answer more 5406
than one such request of a person in any one year.5407

       (D) Notwithstanding the exceptions to public inspection in5408
division (A)(2) of this section, the board may furnish the5409
following information:5410

       (1) If a member, former member, contributor, former5411
contributor, or retirant is subject to an order issued under5412
section 2907.15 of the Revised Code or is convicted of or pleads5413
guilty to a violation of section 2921.41 of the Revised Code, on5414
written request of a prosecutor as defined in section 2935.01 of5415
the Revised Code, the board shall furnish to the prosecutor the5416
information requested from the individual's personal history5417
record.5418

       (2) Pursuant to a court or administrative order issued under5419
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the5420
Revised Code, the board shall furnish to a court or child support5421
enforcement agency the information required under that section.5422

       (3) At the written request of any person, the board shall5423
provide to the person a list of the names and addresses of5424
members, former members, retirants, contributors, former5425
contributors, or beneficiaries. The costs of compiling, copying,5426
and mailing the list shall be paid by such person.5427

       (4) Within fourteen days after receiving from the director of 5428
job and family services a list of the names and social security5429
numbers of recipients of public assistance pursuant to section5430
5101.181 of the Revised Code, the board shall inform the auditor5431
of state of the name, current or most recent employer address, and5432
social security number of each contributor whose name and social5433
security number are the same as that of a person whose name or5434
social security number was submitted by the director. The board5435
and its employees shall, except for purposes of furnishing the5436
auditor of state with information required by this section,5437
preserve the confidentiality of recipients of public assistance in5438
compliance with division (A) of section 5101.181 of the Revised5439
Code.5440

       (5) The system shall comply with orders issued under section5441
3105.87 of the Revised Code.5442

       On the written request of an alternate payee, as defined in5443
section 3105.80 of the Revised Code, the system shall furnish to5444
the alternate payee information on the amount and status of any5445
amounts payable to the alternate payee under an order issued under5446
section 3105.171 or 3105.65 of the Revised Code.5447

       (6) At the request of any person, the board shall make 5448
available to the person copies of all documents, including 5449
resumes, in the board's possession regarding filling a vacancy of 5450
an employee member or retirant member of the board. The person who 5451
made the request shall pay the cost of compiling, copying, and 5452
mailing the documents. The information described in this division 5453
is a public record.5454

       (7) The board shall furnish the personal history records kept 5455
by the board to the secretary of state for the purposes of 5456
certifying an election pursuant to section 111.30 of the Revised 5457
Code.5458

       (E) A statement that contains information obtained from the5459
system's records that is signed by an officer of the retirement5460
system and to which the system's official seal is affixed, or5461
copies of the system's records to which the signature and seal are5462
attached, shall be received as true copies of the system's records5463
in any court or before any officer of this state.5464

       Sec. 3309.99. (A) Whoever violates division (A) of section 5465
3309.073 of the Revised Code shall be fined not more than one 5466
hundred dollars for each day of the violation.5467

       (B) Whoever violates division (B) of section 3309.073 of the 5468
Revised Code shall be imprisoned for not more than six months or 5469
fined not more than five thousand dollars, or both. 5470

        (C) Fines imposed by the Ohio elections commission under this 5471
section shall be paid into the Ohio elections commission fund 5472
created under section 3513.10 of the Revised Code.5473

       Sec. 5505.04.  (A) The general administration and management5474
of the state highway patrol retirement system and the making5475
effective of this chapter are hereby vested in the state highway5476
patrol retirement board. The board may sue and be sued, plead and5477
be impleaded, contract and be contracted with, and do all things5478
necessary to carry out this chapter.5479

       The board shall consist of the auditor of state, the director 5480
of administrative services, the treasurer of state, the5481
superintendent of the state highway patrol, a retirant-member5482
retirant member who is a resident of this state, and four 5483
employee-membersemployee members.5484

       The board shall annually elect a chairperson and5485
vice-chairperson from among its members. The vice-chairperson5486
shall act as chairperson in the absence of the chairperson. A5487
majority of the members of the board shall constitute a quorum and5488
any action taken shall be approved by four or more of the members.5489
The board shall meet not less than once each year, upon sufficient5490
notice to the members. All meetings of the board shall be open to5491
the public except executive sessions as set forth in division (G)5492
of section 121.22 of the Revised Code, and any portions of any5493
sessions discussing medical records or the degree of disability of5494
a member excluded from public inspection by this section.5495

       (B) The attorney general shall prescribe procedures for the5496
adoption of rules authorized under this chapter, consistent with5497
the provision of section 111.15 of the Revised Code under which5498
all rules shall be filed in order to be effective. Such procedures 5499
shall establish methods by which notice of proposed rules are 5500
given to interested parties and rules adopted by the board 5501
published and otherwise made available. When it files a rule with 5502
the joint committee on agency rule review pursuant to section 5503
111.15 of the Revised Code, the board shall submit to the Ohio 5504
retirement study council a copy of the full text of the rule, and 5505
if applicable, a copy of the rule summary and fiscal analysis5506
required by division (B) of section 127.18 of the Revised Code.5507

       (C)(1) Except as provided in division (C)(4) of this section, 5508
the retirant-member of the board shall be elected for a four-year 5509
term by a general election of service and disability retirants 5510
conducted in a manner approved by the board. The term of the 5511
initial retirant-member shall commence in August 1990. A person 5512
who at the time of retirement is an employee-member of the board 5513
is not eligible to become a retirant-member until three years 5514
after such person's retirement date.5515

       (2) Except as provided in division (C)(4) of this section,5516
employee-members of the board shall be elected for terms of four5517
years by a general election of contributing members conducted in a5518
manner approved by the board. The term of office of each5519
employee-member shall commence in August of the year in which such5520
member is elected.5521

       (3) Except as provided in division (C)(4) of this section,5522
any vacancy occurring in the term of the retirant-member or any5523
employee-member of the board shall be filled by an election5524
conducted in the same manner as other retirant-member and5525
employee-member elections. The retirant-member or employee-member5526
elected shall fill the unexpired term.5527

       (4) The state highway patrol retirement board is not required 5528
to hold an election for a position on the board as a5529
retirant-member, employee-member, or vacancy for a retirant-member5530
or employee-member if only one candidate has been nominated for5531
the position or vacancy in the manner approved by the board. The5532
candidate shall take office as if elected. In the case of a5533
retirant-member or employee-member, the term of office shall be5534
four years beginning in August of the year the candidate was5535
nominated. In the case of a vacancy, the candidate shall fill the5536
unexpired term.5537

       (D)(1) As used in this division, "personal history record"5538
means information maintained by the board on an individual who is5539
a member, former member, retirant, or beneficiary that includes5540
the address, telephone number, social security number, record of5541
contributions, correspondence with the system, and other5542
information the board determines to be confidential.5543

       (2) The records of the board shall be open to public5544
inspection, except for the following which shall be excluded: the5545
member's, former member's, retirant's, or beneficiary's personal5546
history record and the amount of a monthly allowance or benefit5547
paid to a retirant, beneficiary, or survivor, except with the5548
written authorization of the individual concerned. All medical5549
reports and recommendations are privileged except that copies of5550
such medical reports or recommendations shall be made available to5551
the individual's personal physician, attorney, or authorized agent5552
upon written release received from such individual or such5553
individual's agent, or when necessary for the proper5554
administration of the fund to the board-assigned physician.5555

       (E)(D) Notwithstanding the exceptions to public inspection in5556
division (D)(C)(2) of this section, the board may furnish the5557
following information:5558

       (1) If a member, former member, or retirant is subject to an5559
order issued under section 2907.15 of the Revised Code or is5560
convicted of or pleads guilty to a violation of section 2921.41 of5561
the Revised Code, on written request of a prosecutor as defined in5562
section 2935.01 of the Revised Code, the board shall furnish to5563
the prosecutor the information requested from the individual's5564
personal history record.5565

       (2) Pursuant to a court order issued under Chapters 3119.,5566
3121., and 3123. of the Revised Code, the board shall furnish to a5567
court or child support enforcement agency the information required5568
under those chapters.5569

       (3) At the written request of any nonprofit organization or5570
association providing services to retirement system members,5571
retirants, or beneficiaries, the board shall provide to the5572
organization or association a list of the names and addresses of5573
members, former members, retirants, or beneficiaries if the5574
organization or association agrees to use such information solely5575
in accordance with its stated purpose of providing services to5576
such individuals and not for the benefit of other persons,5577
organizations, or associations. The costs of compiling, copying,5578
and mailing the list shall be paid by such entity.5579

       (4) Within fourteen days after receiving from the director of 5580
job and family services a list of the names and social security5581
numbers of recipients of public assistance pursuant to section5582
5101.181 of the Revised Code, the board shall inform the auditor5583
of state of the name, current or most recent employer address, and5584
social security number of each member whose name and social5585
security number are the same as those of a person whose name or5586
social security number was submitted by the director. The board5587
and its employees, except for purposes of furnishing the auditor5588
of state with information required by this section, shall preserve5589
the confidentiality of recipients of public assistance in5590
compliance with division (A) of section 5101.181 of the Revised5591
Code.5592

       (5) The system shall comply with orders issued under section5593
3105.87 of the Revised Code.5594

       On the written request of an alternate payee, as defined in5595
section 3105.80 of the Revised Code, the system shall furnish to5596
the alternate payee information on the amount and status of any5597
amounts payable to the alternate payee under an order issued under5598
section 3105.171 or 3105.65 of the Revised Code.5599

       (6) At the request of any person, the board shall make 5600
available to the person copies of all documents, including 5601
resumes, in the board's possession regarding filling a vacancy of 5602
an employee member or retirant member of the board. The person who 5603
made the request shall pay the cost of compiling, copying, and 5604
mailing the documents. The information described in this division 5605
is a public record.5606

       (7) The board shall furnish the personal history records kept 5607
by the board to the secretary of state for the purposes of 5608
certifying an election pursuant to section 111.30 of the Revised 5609
Code.5610

       (F)(E) A statement that contains information obtained from5611
the system's records that is certified and signed by an officer of 5612
the retirement system and to which the system's official seal is5613
affixed, or copies of the system's records to which the signature5614
and seal are attached, shall be received as true copies of the5615
system's records in any court or before any officer of this state.5616

       Sec. 5505.041. All elections for retirant member and employee 5617
members of the state highway patrol retirement board shall be held 5618
under the direction of the board in accordance with rules adopted 5619
under section 111.30 of the Revised Code. A person who at the time 5620
of retirement is an employee member of the board is not eligible 5621
to become a retirant member of the board until three years after 5622
the person's retirement date. Service and disability retirants may 5623
vote in elections for the retirant member of the board. 5624
Contributing members may vote in elections for the employee member 5625
of the board.5626

        On certification of the election results under section 111.30 5627
of the Revised Code, the person elected as the retirant member of 5628
the board or an employee member of the board shall serve a 5629
four-year term beginning on the first day of August following the 5630
election.5631

       Sec. 5505.042. Except as provided in section 5505.043 of the 5632
Revised Code, any vacancy occurring in the term of the retirant 5633
member of the state highway patrol retirement board or an employee 5634
member of the board shall be filled by an election conducted in 5635
the same manner as other retirant member and employee member 5636
elections under section 5505.041 of the Revised Code. On 5637
certification of the election results under section 111.30 of the 5638
Revised Code, the retirant member or employee member elected shall 5639
hold office until the next board election that occurs not less 5640
than ninety days after the member's election.5641

       Sec. 5505.043. The state highway patrol retirement board is 5642
not required to hold an election for a position on the board as a 5643
retirant member, employee member, or vacancy for a retirant member 5644
or employee member if only one candidate has been nominated for 5645
the position or vacancy in accordance with rules governing the 5646
election adopted under section 111.30 of the Revised Code. The 5647
candidate shall take office as if elected. In the case of a 5648
retirant member or employee member, the term of office shall be 5649
four years beginning in August of the year the candidate was 5650
nominated. In the case of a vacancy, the candidate shall fill the 5651
unexpired term.5652

       Sec. 5505.044. (A) As used in this section:5653

        (1) "Campaign committee" means a candidate or a combination 5654
of two or more persons authorized by a candidate to receive 5655
contributions and in-kind contributions and make expenditures on 5656
behalf of the candidate.5657

        (2) "Candidate" means an individual who has been nominated in 5658
accordance with rules adopted under section 111.30 of the Revised 5659
Code for election to the state highway patrol retirement board.5660

        (3) "Contribution" means a loan, gift, deposit, forgiveness 5661
of indebtedness, donation, advance, payment, transfer of funds or 5662
transfer of anything of value including a transfer of funds from 5663
an inter vivos or testamentary trust or decedent's estate, and the 5664
payment by any person other than the person to whom the services 5665
are rendered for the personal services of another person, which 5666
contribution is made, received, or used for the purpose of 5667
influencing the results of an election to the state highway patrol 5668
retirement board under section 5505.041 or 5505.042 of the Revised 5669
Code. "Contribution" does not include:5670

        (a) Services provided without compensation by individuals 5671
volunteering a portion or all of their time on behalf of a person;5672

        (b) Ordinary home hospitality;5673

        (c) The personal expenses of a volunteer paid for by that 5674
volunteer campaign worker.5675

        (4) "Election day" means the following, as appropriate to the 5676
situation:5677

        (a) The last day that ballots for an election to the state 5678
highway patrol retirement board under section 5505.041 or 5505.042 5679
of the Revised Code may be returned in order for the ballot to be 5680
counted;5681

        (b) If, pursuant to section 5505.043 of the Revised Code, no 5682
election is held, the last day that ballots would have been 5683
required to be returned in order to be counted if an election was 5684
to be held under section 5505.041 or 5505.042 of the Revised Code.5685

        (5) "Expenditure" means the disbursement or use of a 5686
contribution for the purpose of influencing the results of an 5687
election to the state highway patrol retirement board under 5688
section 5505.041 or 5505.042 of the Revised Code.5689

        (6) "In-kind contribution" means anything of value other than 5690
money that is used to influence the results of an election to the 5691
state highway patrol retirement board under section 5505.041 or 5692
5505.042 of the Revised Code or is transferred to or used in 5693
support of or in opposition to a candidate and that is made with 5694
the consent of, in coordination, cooperation, or consultation 5695
with, or at the request or suggestion of the benefited candidate. 5696
The financing of the dissemination, distribution, or 5697
republication, in whole or in part, of any broadcast or of any 5698
written, graphic, or other form of campaign materials prepared by 5699
the candidate, the candidate's campaign committee, or their 5700
authorized agents is an in-kind contribution to the candidate and 5701
an expenditure by the candidate.5702

        (7) "Personal expenses" includes ordinary expenses for 5703
accommodations, clothing, food, personal motor vehicle or 5704
airplane, and home telephone.5705

        (B) Each candidate who, or whose campaign committee, receives 5706
a contribution or in-kind contribution or makes an expenditure in 5707
connection with the candidate's efforts to be elected to the state 5708
highway patrol retirement board shall file with the secretary of 5709
state two complete, accurate, and itemized statements setting 5710
forth in detail the contributions, in-kind contributions, and 5711
expenditures. The statements shall be filed regardless of whether 5712
an election is held or, pursuant to section 5505.043 of the 5713
Revised Code, an election is not held. The statements shall be 5714
made on a form prescribed under section 111.30 of the Revised 5715
Code. The first statement shall be filed not later than four p.m. 5716
on the day that is twelve days before election day. The second 5717
statement shall be filed not sooner than the day that is eight 5718
days after election day and not later than thirty-eight days after 5719
election day. The first statement shall reflect contributions and 5720
in-kind contributions received and expenditures made to the close 5721
of business on the twentieth day before election day. The second 5722
statement shall reflect contributions and in-kind contributions 5723
received and expenditures made during the period beginning on the 5724
nineteenth day before election day and ending on the close of 5725
business on the seventh day after election day.5726

       (C) Each individual, partnership, or other entitywho makes 5727
an expenditure in connection with the candidate's efforts to be 5728
elected to the state highway patrol retirement board shall file 5729
with the secretary of state two complete, accurate, and itemized 5730
statements setting forth in detail the expenditures. The 5731
statements shall be filed regardless of whether an election is 5732
held or, pursuant to section 5505.043 of the Revised Code, an 5733
election is not held. The statements shall be made on a form 5734
prescribed under section 111.30 of the Revised Code. 5735

       The first statement shall be filed not later than four p.m. 5736
on the day that is twelve days before election day. The second 5737
statement shall be filed not sooner than the day that is eight 5738
days after election day and not later than thirty-eight days after 5739
election day. The first statement shall reflect expenditures made 5740
to the close of business on the twentieth day before election day. 5741
The second statement shall reflect expenditures made during the 5742
period beginning on the nineteenth day before election day and 5743
ending on the close of business on the seventh day after election 5744
day.5745

       Sec. 5505.045. (A) No person shall knowingly fail to file a 5746
complete and accurate statement in accordance with section 5747
5505.044 of the Revised Code.5748

       (B) No person, during the course of a person seeking 5749
nomination for, and during any campaign for, election to the state 5750
highway patrol retirement board, shall knowingly and with intent 5751
to affect the nomination or the outcome of the campaign do any of 5752
the following by means of campaign materials, an advertisement on 5753
radio or television or in a newspaper or periodical, a public 5754
speech, press release, or otherwise: 5755

       (1) With regard to a candidate, identify the candidate in a 5756
manner that implies that the candidate is a member of the board or 5757
use the term "re-elect" when the candidate is not currently a 5758
member of the board; 5759

       (2) Make a false statement concerning the formal schooling or 5760
training completed or attempted by a candidate; a degree, diploma, 5761
certificate, scholarship, grant, award, prize, or honor received, 5762
earned, or held by a candidate; or the period of time during which 5763
a candidate attended any school, college, community technical 5764
school, or institution; 5765

       (3) Make a false statement concerning the professional, 5766
occupational, or vocational licenses held by a candidate, or 5767
concerning any position the candidate held for which the candidate 5768
received a salary or wages; 5769

       (4) Make a false statement that a candidate or public 5770
official has been indicted or convicted of a theft offense, 5771
extortion, or other crime involving financial corruption or moral 5772
turpitude; 5773

       (5) Make a statement that a candidate has been indicted for 5774
any crime or has been the subject of a finding by the Ohio 5775
elections commission without disclosing the outcome of any legal 5776
proceedings resulting from the indictment or finding; 5777

       (6) Make a false statement that a candidate or official has a 5778
record of treatment or confinement for mental disorder; 5779

       (7) Make a false statement that a candidate or official has 5780
been subjected to military discipline for criminal misconduct or 5781
dishonorably discharged from the armed services; 5782

       (8) Falsely identify the source of a statement, issue 5783
statements under the name of another person without authorization, 5784
or falsely state the endorsement of or opposition to a candidate 5785
by a person or publication; 5786

       (9) Make a false statement concerning the voting record of a 5787
candidate or public official; 5788

       (10) Post, publish, circulate, distribute, or otherwise 5789
disseminate a false statement concerning a candidate, either 5790
knowing the same to be false or with reckless disregard of whether 5791
it was false or not, if the statement is designed to promote the 5792
election, nomination, or defeat of the candidate. 5793

       Sec. 5505.046. The secretary of state, or any person acting 5794
on personal knowledge and subject to the penalties of perjury, may 5795
file a complaint with the Ohio elections commission alleging a 5796
violation of section 5505.045 of the Revised Code. The complaint 5797
shall be made on a form prescribed and provided by the commission.5798

        On receipt of a complaint under this section, the commission 5799
shall hold a hearing open to the public to determine whether the 5800
violation alleged in the complaint has occurred. The commission 5801
may administer oaths and issue subpoenas to any person in the 5802
state compelling the attendance of witnesses and the production of 5803
relevant papers, books, accounts, and reports. On the refusal of 5804
any person to obey a subpoena or to be sworn or to answer as a 5805
witness, the commission may apply to the court of common pleas of 5806
Franklin county under section 2705.03 of the Revised Code. The 5807
court shall hold contempt proceedings in accordance with Chapter 5808
2705. of the Revised Code.5809

        The commission shall provide the person accused of the 5810
violation at least seven days prior notice of the time, date, and 5811
place of the hearing. The accused may be represented by an 5812
attorney and shall have an opportunity to present evidence, call 5813
witnesses, and cross-examine witnesses.5814

        At the hearing, the commission shall determine whether the 5815
violation alleged in the complaint has occurred. If the commission 5816
determines that a violation of division (A) of section 5505.045 of 5817
the Revised Code has occurred, the commission shall either impose 5818
a fine under section 5505.99 of the Revised Code or enter a 5819
finding that good cause has been shown not to impose the fine. If 5820
the commission determines that a violation of division (B) of 5821
section 5505.045 of the Revised Code has occurred, the commission 5822
shall impose the fine described in section 5505.99 of the Revised 5823
Code, refer the matter to the appropriate prosecutor, or enter a 5824
finding that good cause has been shown to not impose a fine or 5825
refer the matter to the appropriate prosecutor.5826

       Sec. 5505.048. An employee member or retirant member of the 5827
state highway patrol retirement board who is charged with 5828
committing a felony, a theft offense as defined in section 2913.01 5829
of the Revised Code, or a violation of section 102.02, 102.03, 5830
102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 5831
2921.43, or 2921.44 of the Revised Code shall be suspended from 5832
participation on the board for the period during which the charges 5833
are pending. If the charges are dismissed, the member is found not 5834
guilty, or the charges are otherwise resolved in a manner not 5835
resulting in the member being convicted of or pleading guilty to 5836
an offense of that nature, the suspension shall end, and the 5837
member may participate on the board. If the member pleads guilty 5838
to or is convicted of the offense, the position of the member on 5839
the board shall be deemed vacant. A person who has pleaded guilty 5840
to or been convicted of an offense of that nature is ineligible 5841
for election to the office of employee member or retirant member 5842
of the state highway patrol retirement board.5843

        The Ohio retirement study council may hold a hearing to 5844
determine whether to remove an employee member or retirant member 5845
of the state highway patrol retirement board who has been 5846
suspended pursuant to this section. If it decides to hold a 5847
hearing, the council shall provide the suspended board member at 5848
least seven days prior notice of the time, date, and place of the 5849
hearing. The suspended board member may be represented by an 5850
attorney. At the hearing, the suspended board member, or the 5851
suspended board member's attorney, shall have an opportunity to 5852
present evidence, call witnesses, and cross-examine witnesses. The 5853
hearing shall be open to the public. At the conclusion of the 5854
hearing, if the voting members of the council unanimously vote to 5855
remove the suspended board member, the suspended board member 5856
shall be removed from the board, and the position of the member 5857
shall be deemed vacant.5858

       Sec. 5505.062. The state highway patrol retirement board 5859
shall do all of the following:5860

        (A) In consultation with the Ohio ethics commission, review 5861
any existing policy regarding the travel and payment of travel 5862
expenses of members and employees of the state highway patrol 5863
retirement board and adopt rules in accordance with section 5864
5505.04 of the Revised Code establishing a new or revised policy 5865
regarding travel and payment of travel expenses;5866

        (B) If the board intends to award a bonus to any employee of 5867
the board, adopt rules in accordance with section 5505.04 of the 5868
Revised Code establishing a policy regarding employee bonuses;5869

        (C) Provide copies of the rules adopted under divisions (A) 5870
and (B) of this section to each member of the Ohio retirement 5871
study council;5872

       (D) Submit to the Ohio retirement study council a proposed 5873
operating budget, including a travel budget, for the next 5874
immediate fiscal year and adopt that budget not earlier than sixty 5875
days after it is submitted to the council.5876

       Sec. 5505.063. The state highway patrol retirement board 5877
shall, in consultation with the Ohio ethics commission, develop an 5878
ethics policy. The board shall submit this policy to the Ohio 5879
retirement study council for approval.5880

        The council shall review the policy in consultation with the 5881
Ohio ethics commission and, if the council determines that the 5882
policy is adequate, approve the policy. If the council determines 5883
that the policy is inadequate, it shall specify the revisions to 5884
be made and the board shall submit a revised policy. If the 5885
council approves the revised policy, the board shall adopt it. If 5886
not, the board shall make any further revisions required by the 5887
council and adopt the policy.5888

       The board periodically shall provide ethics training to 5889
members and employees of the board. The training shall include 5890
training regarding the requirements and prohibitions of Chapter 5891
102. of the Revised Code and sections 2921.42 and 2921.43 of the 5892
Revised Code and any other training the board considers 5893
appropriate.5894

        The board shall establish a procedure to ensure that each 5895
employee of the board is informed of the procedure for filing a 5896
complaint alleging violation of Chapter 102. of the Revised Code 5897
or section 2921.42 or 2921.43 of the Revised Code with the Ohio 5898
ethics commission or the appropriate prosecuting attorney.5899

       Sec. 5505.064.  Each newly elected member of the state 5900
highway patrol retirement board and each individual appointed to 5901
fill a vacancy on the board, shall, not later than ninety days 5902
after commencing service as a board member, complete the 5903
orientation program component of the retirement board member 5904
education program established under section 171.50 of the Revised 5905
Code.5906

        Each member of the board who has served a year or longer as a 5907
board member shall, not less than twice each year, attend one or 5908
more programs that are part of the continuing education component 5909
of the retirement board member education program established under 5910
section 171.50 of the Revised Code.5911

       Sec. 5505.065. The attorney general may maintain a civil 5912
action under section 109.98 of the Revised Code against a member 5913
of the state highway patrol retirement board for harm resulting 5914
from a breach of the member's fiduciary duty.5915

       Sec. 5505.066.  (A) The state highway patrol retirement board 5916
shall designate a person who is a licensed state retirement system 5917
investment officer to be the chief investment officer for the 5918
state highway patrol retirement system. The board shall notify the 5919
division of securities of the department of commerce in writing of 5920
its designation and of any change in its designation within ten 5921
calendar days of the designation or change.5922

       (B) The chief investment officer shall reasonably supervise 5923
the licensed state retirement system investment officers and other 5924
persons employed by the state highway patrol retirement system 5925
with a view toward preventing violations of Chapter 1707. of the 5926
Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. 5927
and following, the "Securities Act of 1933," 48 Stat. 74, 15 5928
U.S.C. and following, and the "Securities Exchange Act of 1934," 5929
48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and 5930
regulations promulgated under those statutes. This duty of 5931
reasonable supervision shall include the adoption, implementation, 5932
and enforcement of written policies and procedures reasonably 5933
designed to prevent persons employed by the state highway patrol 5934
retirement system from misusing material, nonpublic information in 5935
violation of those laws, rules, and regulations.5936

       For purposes of this division, no chief investment officer 5937
shall be considered to have failed to satisfy the officer's duty 5938
of reasonable supervision if the officer has done all of the 5939
following:5940

       (1) Adopted and implemented written procedures, and a system 5941
for applying the procedures, that would reasonably be expected to 5942
prevent and detect, insofar as practicable, any violation by its 5943
licensed investment officers and other persons employed by the 5944
state highway patrol retirement system;5945

       (2) Reasonably discharged the duties and obligations 5946
incumbent on the chief investment officer by reason of the 5947
established procedures and the system for applying the procedures 5948
when the officer had no reasonable cause to believe that there was 5949
a failure to comply with the procedures and systems;5950

       (3) Reviewed, at least annually, the adequacy of the policies 5951
and procedures established pursuant to this section and the 5952
effectiveness of their implementation.5953

       (C) The chief investment officer shall ensure that securities 5954
transactions are executed in such a manner that the state highway 5955
patrol retirement system's total costs or proceeds in each 5956
transaction are the most favorable under the circumstances. 5957

       For purposes of this division, no chief investment officer 5958
shall be considered to have failed to satisfy the officer's duty 5959
of best execution if the officer has done both of the following:5960

       (1) Adopted and implemented a written policy that outlines 5961
the criteria used to select broker-dealers that execute securities 5962
transactions on behalf of the state highway patrol retirement 5963
system, which criteria shall include all of the following:5964

       (a) Commissions charged by the broker-dealer, both in the 5965
aggregate and on a per share basis;5966

       (b) The execution speed and trade settlement capabilities of 5967
the broker-dealer;5968

       (c) The responsiveness, reliability, and integrity of the 5969
broker-dealer;5970

       (d) The nature and value of research provided by the 5971
broker-dealer; 5972

       (e) Any special capabilities of the broker-dealer.5973

       (2) Reviewed, at least annually, the performance of 5974
broker-dealers that execute securities transactions on behalf of 5975
the state highway patrol retirement system. 5976

       Sec. 5505.07.  (A) The state highway patrol retirement board 5977
may employ a secretary and secure the services of employees for 5978
the transaction of business of the state highway patrol retirement 5979
system. The5980

       Effective ninety days after the effective date of this 5981
amendment, the board may not employ a state retirement system 5982
investment officer, as defined in section 1707.01 of the Revised 5983
Code, who does not hold a valid state retirement system investment 5984
officer license issued by the division of securities in the 5985
department of commerce.5986

       The compensation of all persons engaged by the board and all 5987
other expenses of the board necessary for the proper operation of 5988
the pension fund shall be paid at such rates and in such amounts 5989
as the board approves. Every expense voucher of an employee, 5990
officer, or board member of the state highway patrol retirement 5991
system shall itemize all purchases and expenditures.5992

       (B) The clerical procedures required in the operation of the 5993
retirement system shall be performed by the staff of the secretary 5994
appointed by the board. The cost of such clerical procedures and 5995
the services performed by the secretary of the retirement system 5996
shall be paid by the retirement system.5997

       (C) The board shall appoint an actuary who shall be its5998
technical advisor.5999

       (D) The board shall from time to time adopt such mortality6000
and other tables of experience, and such rate or rates of6001
interest, as are required in the proper operation of the6002
retirement system.6003

       (E) The board shall determine by appropriate rules the6004
service to be credited any member in any calendar year.6005

       The board shall perform other functions and adopt rules as6006
required for the proper execution of Chapter 5505. of the Revised6007
Code.6008

       Sec. 5505.122. If the Ohio retirement study council 6009
establishes a uniform format for any report the state highway 6010
patrol retirement board is required to submit to the council, the 6011
board shall submit the report in that format.6012

       Sec. 5505.99. (A) Whoever violates division (A) of section 6013
5505.045 of the Revised Code shall be fined not more than one 6014
hundred dollars for each day of the violation.6015

       (B) Whoever violates division (B) of section 5505.045 of the 6016
Revised Code shall be imprisoned for not more than six months or 6017
fined not more than five thousand dollars, or both. 6018

       (C) Fines imposed by the Ohio elections commission under this 6019
section shall be paid into the Ohio elections commission fund 6020
created under section 3513.10 of the Revised Code.6021

       Section 2. That existing sections 102.02, 102.03, 102.06, 6022
117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 6023
171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 6024
742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 6025
1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 6026
3307.03, 3307.05, 3307.06, 3309.061, 3307.07, 3307.11, 3307.20, 6027
3309.03, 3309.05, 3309.06, 3309.07, 3309.14, 3309.22, 5505.04, and 6028
5505.07 of the Revised Code are hereby repealed.6029

       Section 3. Section 1707.162 of the Revised Code, as enacted 6030
by this act, shall take effect ninety days after the effective 6031
date of this section.6032

       Section 4. The amendment to sections 3307.05, 3307.06, and6033
3307.07 of the Revised Code in this act shall not affect the term6034
of any elected member of the State Teachers Retirement Board 6035
serving on the effective date of this section. The term of the 6036
additional retired teacher member position as created by this act, 6037
shall commence September 1, 2004.6038

       Section 5. The Ohio Ethics Commission has authority to 6039
investigate allegations of violations of Chapter 102. of the 6040
Revised Code or section 2921.42 or 2921.43 of the Revised Code by 6041
members or employees of the state retirement boards. This express 6042
statement of authority is an affirmance of the commission's 6043
authority to conduct these investigations. It does not imply and 6044
shall not be construed to mean that the Ohio Ethics Commission did 6045
not have authority to investigate violations of this nature prior 6046
to the enactment of this act.6047

       Section 6.  Section 742.41 of the Revised Code is presented 6048
in this act as a composite of the section as amended by both Sub. 6049
H.B. 535 and Am. Sub. S.B. 180 of the 123rd General Assembly. 6050
Section 3307.20 of the Revised Code is presented in this act as a 6051
composite of the section as amended by both Sub. H.B. 535 and Am. 6052
Sub. S.B. 180 of the 123rd General Assembly. Section 3309.22 of 6053
the Revised Code is presented in this act as a composite of the 6054
section as amended by Sub. H.B. 535, Sub. S.B. 270, and Am. Sub. 6055
S.B. 180 all of the 123rd General Assembly. Section 5505.04 of the 6056
Revised Code is presented in this act as a composite of the 6057
section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of6058
the 123rd General Assembly. The General Assembly, applying the6059
principle stated in division (B) of section 1.52 of the Revised6060
Code that amendments are to be harmonized if reasonably capable of6061
simultaneous operation, finds that the composites are the 6062
resulting versions of the sections in effect prior to the 6063
effective dates of the sections as presented in this act.6064